Wolfspeed Inc (WOLF)

Total asset turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	807,400	878,100	699,200	478,000	880,600
Total assets	US$ in thousands	7,984,600	6,586,700	3,917,500	3,446,800	3,231,000
Total asset turnover		0.10	0.13	0.18	0.14	0.27

June 30, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $807,400K ÷ $7,984,600K
= 0.10

The total asset turnover ratio indicates how efficiently a company utilizes its assets to generate revenue. A higher ratio usually signifies better efficiency in asset utilization.

For Wolfspeed Inc, we observe fluctuations in the total asset turnover ratio over the past five years. In 2020, the company had a relatively high total asset turnover of 0.27, indicating that it generated $0.27 of revenue for every $1 of assets. However, this ratio decreased significantly in 2021 to 0.14, suggesting a decline in asset efficiency.

In 2022, there was a slight improvement with a total asset turnover ratio of 0.18, indicating a better utilization of assets compared to the previous year. The ratio further decreased in 2023 to 0.13, signaling reduced efficiency in generating revenue from assets.

The most recent data for 2024 shows a marginal improvement with a total asset turnover ratio of 0.10. This decrease may imply a need for the company to focus on optimizing its asset utilization to enhance revenue generation efficiency.

Overall, the trend in Wolfspeed Inc's total asset turnover ratio indicates some variability in asset efficiency over the past five years, with periods of improvement and decline. Further analysis of the company's operational activities and asset management practices may be necessary to understand the factors influencing these fluctuations.