Trimble Inc (TRMB)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,798,700 | 3,676,300 | 3,659,400 | 3,152,000 | 3,271,300 |
| Total assets | US$ in thousands | 9,539,300 | 7,269,000 | 7,099,600 | 6,876,900 | 6,640,700 |
| Total asset turnover | 0.40 | 0.51 | 0.52 | 0.46 | 0.49 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,798,700K ÷ $9,539,300K
= 0.40
Total asset turnover measures how efficiently a company generates sales revenue from its assets. The trend of Trimble Inc's total asset turnover over the past five years shows some fluctuations, ranging from 0.40 to 0.52.
In 2023, the total asset turnover ratio decreased to 0.40 from 0.51 in 2022, indicating that Trimble Inc generated $0.40 of sales for every dollar of assets. This decline could be attributed to various factors such as changes in sales volume, asset management efficiency, or a shift in the asset composition.
Despite the drop in 2023, the company's total asset turnover has generally been relatively stable in the range of 0.46 to 0.52 over the past five years. This consistency suggests that Trimble Inc has been effectively utilizing its assets to generate revenue, albeit with some year-to-year variability.
It is important for Trimble Inc to closely monitor its total asset turnover ratio to ensure that the company is efficiently utilizing its assets to maximize sales and profitability. Additionally, exploring reasons behind fluctuations in the ratio can provide insights for potential improvements in operational efficiency and resource allocation.
Peer comparison
Dec 31, 2023