Upbound Group Inc. (UPBD)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,992,410 | 4,245,390 | 4,583,450 | 2,814,190 | 2,669,850 |
| Total assets | US$ in thousands | 2,721,430 | 2,763,620 | 2,993,330 | 1,750,980 | 1,582,800 |
| Total asset turnover | 1.47 | 1.54 | 1.53 | 1.61 | 1.69 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,992,410K ÷ $2,721,430K
= 1.47
Upbound Group Inc.'s total asset turnover has shown a declining trend over the past five years, decreasing from 1.69 in 2019 to 1.47 in 2023. This ratio indicates the company's ability to generate revenue relative to its total assets. A lower total asset turnover ratio suggests that the company is less efficient in generating sales from its assets.
The decreasing trend in total asset turnover could be attributed to various factors such as inefficient asset utilization, increasing asset base without proportionate revenue growth, or a decline in sales relative to total assets. It may also indicate that the company's operational efficiency has decreased over time.
It is essential for Upbound Group Inc. to conduct a detailed analysis of its asset management practices, revenue generation strategies, and operational efficiency to identify the underlying reasons for the declining total asset turnover. By addressing these issues and improving asset utilization, the company can potentially enhance its financial performance and profitability in the future.
Peer comparison
Dec 31, 2023