Advanced Drainage Systems Inc (WMS)
Total asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,884,829 | 2,852,169 | 2,844,969 | 2,948,958 | 3,071,658 | 3,135,190 | 3,194,631 | 3,016,141 | 2,772,332 | 2,532,878 | 2,304,154 | 2,142,145 | 1,978,469 | 1,906,416 | 1,813,956 | 1,765,189 | 1,672,121 | 1,573,571 | 1,498,558 | 1,410,542 |
| Total assets | US$ in thousands | 3,268,910 | 3,161,960 | 3,137,970 | 3,048,670 | 2,901,120 | 3,005,660 | 3,177,600 | 3,225,360 | 2,649,760 | 2,555,760 | 2,506,620 | 2,474,620 | 2,413,830 | 2,342,440 | 2,373,370 | 2,415,030 | 2,369,890 | 2,249,180 | 2,295,320 | 1,068,420 |
| Total asset turnover | 0.88 | 0.90 | 0.91 | 0.97 | 1.06 | 1.04 | 1.01 | 0.94 | 1.05 | 0.99 | 0.92 | 0.87 | 0.82 | 0.81 | 0.76 | 0.73 | 0.71 | 0.70 | 0.65 | 1.32 |
March 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,884,829K ÷ $3,268,910K
= 0.88
Total asset turnover measures the efficiency of a company in generating sales revenue from its assets. Advanced Drainage Systems Inc's total asset turnover has fluctuated over time, ranging from a low of 0.65 to a high of 1.32.
In the most recent period, the total asset turnover was 0.88, indicating that the company generated $0.88 in sales for every dollar of assets held. This suggests that the company may need to improve its asset utilization to generate more revenue from its asset base.
Looking at the trend over the past few quarters, the total asset turnover has shown some volatility but has generally been around 0.90 to 1.06. This indicates that Advanced Drainage Systems Inc has been fairly effective in utilizing its assets to drive sales during this period.
However, it is essential for the company to closely monitor and analyze this ratio periodically to ensure that its asset management remains efficient and effective in supporting revenue generation.