Tractor Supply Company (TSCO)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,555,700 | 14,204,700 | 12,731,100 | 10,620,400 | 8,351,930 |
| Total assets | US$ in thousands | 9,188,150 | 8,489,990 | 7,767,470 | 7,049,120 | 5,289,270 |
| Total asset turnover | 1.58 | 1.67 | 1.64 | 1.51 | 1.58 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $14,555,700K ÷ $9,188,150K
= 1.58
Tractor Supply Company's total asset turnover has shown some fluctuation over the past five years, ranging from 1.51 in 2020 to 1.67 in 2022. The ratio indicates the efficiency with which the company generates sales revenue relative to its total assets. A higher total asset turnover ratio suggests that the company is utilizing its assets more effectively to generate sales.
In 2023, the total asset turnover decreased slightly to 1.58 from the previous year's 1.67, indicating a slight decline in the efficiency of asset utilization. This could be due to various factors such as increased total assets without a corresponding increase in sales, or a decrease in sales revenue generated by the existing asset base.
Overall, while Tractor Supply Company's total asset turnover has shown fluctuations, it has generally remained at a reasonable level, implying a satisfactory level of efficiency in utilizing its assets to generate sales revenue. It is essential for the company to continue monitoring this ratio to ensure optimal asset utilization and operational performance.
Peer comparison
Dec 31, 2023