Vestis Corporation (VSTS)
Total asset turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,805,396 | 2,837,440 | 2,848,575 | 2,842,513 | 2,825,286 | 2,792,558 | 2,762,895 |
| Total assets | US$ in thousands | 2,932,390 | 3,145,630 | 3,121,660 | 3,161,750 | 3,157,120 | 3,169,800 | 3,176,540 |
| Total asset turnover | 0.96 | 0.90 | 0.91 | 0.90 | 0.89 | 0.88 | 0.87 |
September 30, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,805,396K ÷ $2,932,390K
= 0.96
Total asset turnover is a key financial ratio that measures how efficiently a company is utilizing its assets to generate revenue. It is calculated by dividing the company's net sales by its average total assets.
Based on the data provided for Vestis Corporation, we can see that the total asset turnover has been relatively stable over the past several quarters, ranging from 0.87 to 0.96. This indicates that, on average, Vestis Corporation generates approximately $0.90 in sales for every $1 of total assets during the period under review.
A total asset turnover ratio of less than 1 may suggest that the company is not efficiently utilizing its assets to generate sales. However, the consistency in the ratio over the quarters implies that Vestis Corporation's asset management strategy has remained fairly consistent.
It is important to compare this total asset turnover ratio with industry benchmarks or historical data of the company to gain a better understanding of Vestis Corporation's performance in this aspect. Additionally, further analysis of the company's operations and business model may provide insights into potential areas for improvement in asset utilization efficiency.
Peer comparison
Sep 30, 2024