Vicor Corporation (VICR)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 370,896 | 413,907 | 400,531 | 719,112 | 594,138 |
| Total assets | US$ in thousands | 641,118 | 594,887 | 536,901 | 477,205 | 396,239 |
| Total asset turnover | 0.58 | 0.70 | 0.75 | 1.51 | 1.50 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $370,896K ÷ $641,118K
= 0.58
Total asset turnover is a crucial financial ratio that reveals how efficiently a company utilizes its assets to generate revenue. In the case of Vicor Corporation, the trend in total asset turnover over the past five years shows fluctuations.
In 2020, Vicor Corporation had a total asset turnover of 1.50, indicating that each dollar of assets generated $1.50 in revenue. This was a good sign of asset efficiency. In 2021, the total asset turnover slightly improved to 1.51, suggesting a continued efficient use of assets to generate revenue.
However, there was a noticeable decline in 2022, as the total asset turnover dropped to 0.75. This decline indicates that the company's ability to generate revenue from its assets weakened significantly during that year. The trend continued in 2023, with the total asset turnover further decreasing to 0.70.
By the end of 2024, Vicor Corporation experienced a significant decline in asset turnover, with the ratio falling to 0.58. This decreasing trend in total asset turnover over the past three years could signal potential inefficiencies in asset utilization or a decline in revenue generation compared to the value of assets held.
Overall, the decreasing trend in total asset turnover over the past three years should prompt further analysis to identify the underlying reasons for the decline and to assess the company's operational efficiency and revenue generation strategies.
Peer comparison
Dec 31, 2024