Woodward Inc (WWD)
Total asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,865,510 | 2,353,550 | 2,214,170 | 2,467,570 | 2,857,210 |
| Total assets | US$ in thousands | 4,010,200 | 3,806,450 | 4,091,000 | 3,903,340 | 3,956,530 |
| Total asset turnover | 0.71 | 0.62 | 0.54 | 0.63 | 0.72 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,865,510K ÷ $4,010,200K
= 0.71
Woodward Inc's total asset turnover ratio has fluctuated over the past five years, from 0.73 in 2019 to 0.55 in 2021, before increasing to 0.73 again in 2023. This ratio indicates the company's ability to generate sales in relation to its total assets. A higher turnover ratio is generally preferred, as it suggests that the company is more efficient in utilizing its assets to generate revenue.
The noticeable decrease in 2021 may raise concerns about asset utilization, as it indicates that the company was generating less revenue relative to its total assets. However, the subsequent increase in 2023 suggests an improvement in this aspect. It would be important to further examine the company's operating and asset management strategies to understand the factors contributing to these fluctuations.
Overall, Woodward Inc's total asset turnover ratio demonstrates variability in its asset utilization efficiency over the years, highlighting the need for a detailed analysis of its operational and financial performance.