Wingstop Inc (WING)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 460,055 | 357,521 | 282,502 | 248,811 | 199,676 |
| Total assets | US$ in thousands | 377,825 | 424,190 | 249,203 | 211,565 | 166,113 |
| Total asset turnover | 1.22 | 0.84 | 1.13 | 1.18 | 1.20 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $460,055K ÷ $377,825K
= 1.22
Total asset turnover is a key financial ratio that measures a company's ability to generate revenue from its assets. It indicates how efficiently a company is using its assets to generate sales.
Looking at the trend in Wingstop Inc's total asset turnover over the past five years, we can see fluctuations in the ratio. In 2023, the total asset turnover ratio increased to 1.22 from 0.84 in 2022, indicating that the company generated $1.22 in sales for every $1 of assets it owns.
This improvement suggests that Wingstop Inc was able to utilize its assets more efficiently in 2023 compared to the previous year. However, it is important to note that the ratio was higher in 2020 and 2019, indicating even higher asset turnover in those years.
Overall, a total asset turnover ratio above 1 signifies that Wingstop Inc is effectively using its assets to generate revenue. Monitoring this ratio over time can provide insights into the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2023