Vestis Corporation (VSTS)
Total asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,825,290 | 2,687,000 | 2,456,580 | 2,562,000 |
| Total assets | US$ in thousands | 3,157,120 | 3,133,010 | 3,108,380 | — |
| Total asset turnover | 0.89 | 0.86 | 0.79 | — |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,825,290K ÷ $3,157,120K
= 0.89
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. Vestis Corporation's total asset turnover has been showing a positive trend over the past three years, increasing from 0.79 in 2021 to 0.86 in 2022 and further to 0.89 in 2023. This indicates that the company is becoming more efficient in utilizing its assets to generate sales. A total asset turnover ratio of 0.89 means that for every dollar of total assets, Vestis Corporation is generating $0.89 in sales revenue.
The improving trend in total asset turnover reflects positively on Vestis Corporation's operational efficiency and management of its assets. It suggests that the company is effectively utilizing its resources to drive revenue growth. However, further analysis of industry benchmarks and historical data would provide a more comprehensive understanding of Vestis Corporation's performance in relation to its peers and over time.
Peer comparison
Sep 30, 2023