Vicor Corporation (VICR)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 413,907 | 400,531 | 719,112 | 594,138 | 526,740 |
| Total assets | US$ in thousands | 594,887 | 536,901 | 477,205 | 396,239 | 240,727 |
| Total asset turnover | 0.70 | 0.75 | 1.51 | 1.50 | 2.19 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $413,907K ÷ $594,887K
= 0.70
The total asset turnover ratio of Vicor Corp. has shown a declining trend over the past five years. In 2019, the ratio was relatively high at 1.09, indicating that the company generated $1.09 in sales for every $1 of total assets. However, this ratio has since decreased to 0.68 in 2023, suggesting that the company is generating lower sales relative to its total assets.
A decreasing total asset turnover ratio could signal inefficiencies in the company's asset management or declining sales performance. It may indicate that Vicor Corp. is not effectively utilizing its assets to generate revenue. This could be a concern for investors and stakeholders as it implies that the company's asset base is not being leveraged to its full potential to drive sales and profits.
Further analysis and comparison with industry benchmarks and competitors may be necessary to fully understand the implications of the declining total asset turnover ratio for Vicor Corp. and to identify areas for improvement in asset utilization and operational efficiency.
Peer comparison
Dec 31, 2023