United Therapeutics Corporation (UTHR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,268,200 | 1,903,900 | 1,666,900 | 1,483,300 | 1,448,800 |
| Total assets | US$ in thousands | 7,167,000 | 6,044,500 | 5,169,100 | 4,615,000 | 3,913,400 |
| Total asset turnover | 0.32 | 0.31 | 0.32 | 0.32 | 0.37 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,268,200K ÷ $7,167,000K
= 0.32
United Therapeutics Corp's total asset turnover ratio has been relatively stable over the past five years, ranging from 0.32 to 0.37. This ratio measures the company's ability to generate revenue from its total assets. A total asset turnover ratio of 0.32 to 0.37 indicates that, on average, the company generates approximately $0.32 to $0.37 of revenue for every $1 of total assets it holds.
The consistency in this ratio suggests that United Therapeutics Corp has been able to effectively utilize its assets in generating revenue. However, it might also indicate that the company is not rapidly expanding its revenue generation relative to its asset base. Further analysis would be needed to assess the factors influencing the stability of this ratio and to determine if there are opportunities to improve asset utilization and overall efficiency in revenue generation.
Peer comparison
Dec 31, 2023