Werner Enterprises Inc (WERN)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,283,500 | 3,289,980 | 2,734,370 | 2,372,180 | 2,463,700 |
| Total assets | US$ in thousands | 3,157,940 | 3,097,260 | 2,603,710 | 2,156,680 | 2,143,860 |
| Total asset turnover | 1.04 | 1.06 | 1.05 | 1.10 | 1.15 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,283,500K ÷ $3,157,940K
= 1.04
The total asset turnover ratio for Werner Enterprises, Inc. has shown a decreasing trend over the past five years. The company's total asset turnover was 1.15 in 2019, indicating that it generated $1.15 of revenue for every $1 of assets. However, this ratio has been gradually declining, reaching 1.04 in 2023.
A total asset turnover ratio of less than 1 suggests that the company is not efficiently utilizing its assets to generate revenues. Despite the slight fluctuations in the ratio over the years, the downward trend indicates a potential inefficiency in asset utilization by the company.
It is important for Werner Enterprises to closely monitor and improve its total asset turnover ratio to ensure optimal utilization of its assets and to enhance its overall financial performance. This may involve strategies such as improving operational efficiency, optimizing asset management, or increasing revenue generation from existing assets.
Peer comparison
Dec 31, 2023