WD-40 Company (WDFC)
Total asset turnover
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 589,498 | 532,231 | 517,489 | 488,109 | 408,498 |
| Total assets | US$ in thousands | 449,039 | 437,966 | 434,295 | 430,203 | 362,637 |
| Total asset turnover | 1.31 | 1.22 | 1.19 | 1.13 | 1.13 |
August 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $589,498K ÷ $449,039K
= 1.31
Total asset turnover is a measure of how efficiently WD-40 Company is utilizing its assets to generate sales. The trend for WD-40 Company's total asset turnover over the past five years shows a generally positive trajectory, increasing from 1.13 in 2020 to 1.31 in 2024. This indicates that the company has been able to generate more revenue relative to its total assets over the years.
A higher total asset turnover ratio is usually preferred as it suggests that the company is more efficient in generating sales from its assets. WD-40 Company's increasing total asset turnover may imply improved operational efficiency, better inventory management, or effective asset utilization strategies.
It is essential for investors and stakeholders to monitor total asset turnover over time to assess the company's ability to generate sales from its assets efficiently. A sustained increase in total asset turnover can be a positive sign of the company's operational effectiveness and financial health.
Peer comparison
Aug 31, 2024