Wingstop Inc (WING)

Total asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 625,807 591,043 545,649 497,123 460,055 437,865 413,433 390,037 357,521 324,682 297,794 288,017 282,502 273,756 271,960 264,065 248,811 238,715 224,602 207,059
Total assets US$ in thousands 716,246 484,762 451,821 412,251 377,825 351,676 451,217 451,297 424,190 411,036 395,361 507,296 249,203 260,399 234,264 217,771 211,565 219,691 201,114 188,514
Total asset turnover 0.87 1.22 1.21 1.21 1.22 1.25 0.92 0.86 0.84 0.79 0.75 0.57 1.13 1.05 1.16 1.21 1.18 1.09 1.12 1.10

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $625,807K ÷ $716,246K
= 0.87

The total asset turnover ratio measures the efficiency with which a company utilizes its assets to generate revenue. Wingstop Inc's total asset turnover fluctuated over the years provided in the data.

From March 31, 2020, to June 30, 2021, the total asset turnover ratio of Wingstop Inc showed an increasing trend, indicating improved efficiency in generating sales revenue relative to its total assets. This suggests that the company was able to use its assets more effectively to generate revenue during this period.

However, from September 30, 2021, to March 31, 2024, the total asset turnover ratio exhibited fluctuations, with some quarters showing decreases and increases. This could be due to changes in the company's operations or asset management practices during these periods.

Notably, the total asset turnover ratio significantly dropped from March 31, 2022, to June 30, 2022, before gradually increasing from September 30, 2022, to September 30, 2023. The ratio peaked at 1.25 on September 30, 2023, indicating a high level of efficiency in utilizing assets to generate revenue at that time.

However, the ratio declined in the subsequent quarters, with a notable decrease to 0.87 by December 31, 2024. This decline suggests that Wingstop Inc may have experienced challenges in effectively using its assets to drive revenue generation by the end of 2024.

Overall, it is essential for Wingstop Inc to monitor and manage its total asset turnover ratio effectively to ensure optimal utilization of assets in generating revenue and maximizing overall performance.