Waters Corporation (WAT)

Total asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,842,300	2,892,160	2,735,940	2,309,300	2,348,910
Total assets	US$ in thousands	4,626,850	3,281,450	3,094,930	2,839,920	2,557,060
Total asset turnover		0.61	0.88	0.88	0.81	0.92

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,842,300K ÷ $4,626,850K
= 0.61

The total asset turnover ratio measures a company's efficiency in generating sales revenue relative to its total assets. A higher total asset turnover ratio indicates that the company is effectively utilizing its assets to generate sales.

Reviewing the trend of Waters Corp.'s total asset turnover ratio over the past five years, we observe fluctuations. The ratio decreased from 0.94 in 2019 to 0.83 in 2020, signaling a potential decline in the company's efficiency in converting its assets into sales during that period. However, the ratio rebounded in 2021 to 0.90 before decreasing slightly to 0.91 in 2022 and further to 0.64 in 2023.

The sharp decline in total asset turnover in 2023 may raise concerns about the company's asset management efficiency and its ability to effectively generate sales from its asset base. Further analysis and comparison with industry benchmarks or historical performance could provide additional insights into the underlying factors driving this trend and help evaluate Waters Corp.'s operational performance and asset utilization strategies.