Veracyte Inc (VCYT)

Total asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 445,764 361,051 296,536 219,514 117,483
Total assets US$ in thousands 1,300,040 1,114,910 1,156,420 1,187,820 457,163
Total asset turnover 0.34 0.32 0.26 0.18 0.26

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $445,764K ÷ $1,300,040K
= 0.34

The total asset turnover ratio of Veracyte Inc. exhibits notable fluctuation over the analyzed period from December 31, 2020, to December 31, 2024. In 2020, the ratio was 0.26, indicating that the company generated approximately 26 cents of revenue per dollar of total assets. This ratio declined significantly in 2021 to 0.18, suggesting a reduction in asset efficiency or a decline in sales relative to total assets.

Subsequently, the ratio recovered to 0.26 in 2022, returning to the level observed at the end of 2020, implying a stabilization in asset utilization during that year. From 2022 onwards, the total asset turnover demonstrated a steady upward trend, reaching 0.32 in 2023 and further increasing to 0.34 in 2024. This progressive increase indicates that the company has become increasingly efficient in using its total assets to generate revenue, reflecting potential improvements in operational efficiency, sales effectiveness, or asset management.

Overall, the observed trend suggests that Veracyte Inc. has experienced a gradual enhancement in its asset utilization efficiency over the recent years, culminating in the highest total asset turnover ratio recorded in 2024. This progression may be indicative of strategic improvements or operational optimizations that have positively impacted revenue generation relative to the company's asset base.