Williams Companies Inc (WMB)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,907,000 | 10,965,000 | 10,627,000 | 7,719,000 | 8,201,000 |
| Total assets | US$ in thousands | 52,627,000 | 48,433,000 | 47,612,000 | 44,165,000 | 46,040,000 |
| Total asset turnover | 0.21 | 0.23 | 0.22 | 0.17 | 0.18 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,907,000K ÷ $52,627,000K
= 0.21
The total asset turnover of Williams Cos Inc has fluctuated over the past five years, ranging from 0.17 to 0.23. The ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher total asset turnover signals better efficiency in generating sales from its assets.
In 2023, the total asset turnover decreased to 0.21 from 0.23 in 2022, which suggests a slight decline in asset efficiency in generating sales revenue. However, the company's performance in 2023 remains relatively stable compared to previous years, as the ratio has hovered within a narrow range of 0.17 to 0.23.
It is essential for Williams Cos Inc to closely monitor and manage its asset turnover to ensure optimal utilization of resources and continued growth in revenue generation. Further analysis of the company's operational efficiency and asset management strategies could provide insights into improving its total asset turnover ratio in the future.
Peer comparison
Dec 31, 2023