It Tech Packaging(Itp) 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 ITP 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', ITP's total asset turnover was 0.67, reflecting overall efficiency in utilizing assets. Industry average for Containers/Packaging in '2021' stood at 0.71.
• In '2022', ITP's total asset turnover was 0.45, reflecting overall efficiency in utilizing assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2022' stood at 0.76. Industry average increased by 0.06 compared to previous year.
• In '2023', ITP's total asset turnover was 0.43, reflecting overall efficiency in utilizing assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2023' stood at 0.73. Industry average declined by 0.03 from previous year.
• In '2024', ITP's total asset turnover was 0.41, reflecting overall efficiency in utilizing assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2024' stood at 0.68. Industry average declined by 0.05 from previous year.
Overall, ITP'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.