Covenant Logistics(Cvlg) Financials: Total Asset Turnover Compared To Industry Average, Plus Other Key Ratios
Growth Trend (Last 5 Years)
Growth - total asset turnover
This chart shows the historical trend of total asset turnover for CVLG compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Total Asset Turnover
Definition: Total asset turnover measures how efficiently the company generates sales from its entire asset base. A high turnover means the company gets a lot of sales out of relatively fewer assets — very efficient. A low turnover may suggest underused assets or bloated balance sheets.
Interpretation:
• In '2021', CVLG's total asset turnover was 1.61, reflecting overall efficiency in utilizing assets. Industry average for Trucking Freight/Courier Services in '2021' stood at 1.45.
• In '2022', CVLG's total asset turnover was 1.68, reflecting overall efficiency in utilizing assets. The increase since '2021' reflects strengthening financial performance. Industry average for Trucking Freight/Courier Services in '2022' stood at 1.81. Industry average increased by 0.36 compared to previous year.
• In '2023', CVLG's total asset turnover was 1.26, reflecting overall efficiency in utilizing assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Trucking Freight/Courier Services in '2023' stood at 1.56. Industry average declined by 0.26 from previous year.
• In '2024', CVLG's total asset turnover was 1.16, reflecting overall efficiency in utilizing assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Trucking Freight/Courier Services in '2024' stood at 1.43. Industry average declined by 0.13 from previous year.
Overall, CVLG's total asset turnover has been volatile but showed a downward trend over the past 4 years.
Formula: Total Asset Turnover = Net Sales / Total Assets
Good Range: Ranges from 0.5 to 2 depending on business type.