Vontier Corp (VNT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,081,000 | 3,083,800 | 2,921,100 | 2,671,300 |
| Total assets | US$ in thousands | 4,294,000 | 4,343,300 | 4,349,800 | 3,073,000 |
| Total asset turnover | 0.72 | 0.71 | 0.67 | 0.87 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,081,000K ÷ $4,294,000K
= 0.72
The total asset turnover ratio measures how efficiently a company utilizes its assets to generate revenue. A higher ratio indicates better asset utilization. In the case of Vontier Corporation, the trend in total asset turnover has been mixed over the past five years.
In 2019, Vontier had a total asset turnover of 0.98, which was relatively high and indicated that the company generated $0.98 in revenue for every dollar of assets. However, in the following years, the total asset turnover ratio declined, reaching 0.72 in 2023.
The decreasing trend in total asset turnover could suggest that Vontier may not be effectively utilizing its assets to generate sales in recent years. It is important for the company to investigate the reasons behind this decline and consider strategies to improve asset efficiency to enhance overall financial performance.
Peer comparison
Dec 31, 2023