Tootsie Roll Industries Inc (TR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 766,225 | 688,173 | 571,397 | 472,151 | 529,311 |
| Total assets | US$ in thousands | 1,084,390 | 1,018,780 | 1,018,620 | 984,558 | 977,864 |
| Total asset turnover | 0.71 | 0.68 | 0.56 | 0.48 | 0.54 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $766,225K ÷ $1,084,390K
= 0.71
Tootsie Roll Industries, Inc.'s total asset turnover has shown a fluctuating trend over the past five years. The ratio measures the efficiency with which the company generates sales in relation to its total assets. A higher total asset turnover ratio generally indicates better asset utilization.
In 2023, the total asset turnover improved to 0.71 from 0.67 in 2022, suggesting that the company generated more revenue per dollar of assets invested. This increase indicates that Tootsie Roll Industries became more efficient in utilizing its assets to generate sales.
Comparing the 2023 ratio to previous years, there has been a noticeable improvement since 2020 when the total asset turnover was only 0.48. This suggests that the company has steadily enhanced its asset utilization efficiency over the years, reaching the highest point in 2023.
Overall, Tootsie Roll Industries' increasing total asset turnover ratio reflects a positive trend in the company's ability to generate sales relative to the investment in its assets. It indicates growing efficiency in utilizing assets to drive revenue, which is a positive sign for the company's financial performance.
Peer comparison
Dec 31, 2023