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Graco (GGG) Asset Turnover : 0.18 (As of Mar. 2024)


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What is Graco Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Graco's Revenue for the three months ended in Mar. 2024 was $492 Mil. Graco's Total Assets for the quarter that ended in Mar. 2024 was $2,754 Mil. Therefore, Graco's Asset Turnover for the quarter that ended in Mar. 2024 was 0.18.

Asset Turnover is linked to ROE % through Du Pont Formula. Graco's annualized ROE % for the quarter that ended in Mar. 2024 was 21.44%. It is also linked to ROA % through Du Pont Formula. Graco's annualized ROA % for the quarter that ended in Mar. 2024 was 17.75%.


Graco Asset Turnover Historical Data

The historical data trend for Graco's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Graco Asset Turnover Chart

Graco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.04 0.90 0.90 0.88 0.85

Graco Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.21 0.21 0.20 0.21 0.18

Competitive Comparison of Graco's Asset Turnover

For the Specialty Industrial Machinery subindustry, Graco's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Graco's Asset Turnover Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Graco's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Graco's Asset Turnover falls into.



Graco Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Graco's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=2195.606/( (2438.9+2722.007)/ 2 )
=2195.606/2580.4535
=0.85

Graco's Asset Turnover for the quarter that ended in Mar. 2024 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Mar. 2024 )/( (Total Assets (Q: Dec. 2023 )+Total Assets (Q: Mar. 2024 ))/ count )
=492.189/( (2722.007+2786.825)/ 2 )
=492.189/2754.416
=0.18

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Graco  (NYSE:GGG) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Graco's annulized ROE % for the quarter that ended in Mar. 2024 is

ROE %**(Q: Mar. 2024 )
=Net Income/Total Stockholders Equity
=488.796/2279.937
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(488.796 / 1968.756)*(1968.756 / 2754.416)*(2754.416/ 2279.937)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.83 %*0.7148*1.2081
=ROA %*Equity Multiplier
=17.75 %*1.2081
=21.44 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Graco's annulized ROA % for the quarter that ended in Mar. 2024 is

ROA %(Q: Mar. 2024 )
=Net Income/Total Assets
=488.796/2754.416
=(Net Income / Revenue)*(Revenue / Total Assets)
=(488.796 / 1968.756)*(1968.756 / 2754.416)
=Net Margin %*Asset Turnover
=24.83 %*0.7148
=17.75 %

Note: The Net Income data used here is four times the quarterly (Mar. 2024) net income data. The Revenue data used here is four times the quarterly (Mar. 2024) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Graco Asset Turnover Related Terms

Thank you for viewing the detailed overview of Graco's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Graco (GGG) Business Description

Traded in Other Exchanges
Address
88-11th Avenue Northeast, Minneapolis, MN, USA, 55413
Graco manufactures equipment used for managing fluids, coatings, and adhesives, specializing in difficult-to-handle materials. Graco's business is organized into three segments: industrial, process, and contractor. The Minnesota-based firm serves a wide range of end markets, including industrial, automotive, and construction, and its broad array of products include pumps, valves, meters, sprayers, and equipment used to apply coatings, sealants, and adhesives. The firm generated roughly $2.1 billion in sales and $573 million in operating income in 2022.
Executives
Mark W Sheahan officer: VICE PRESIDENT AND TREASURER P.O. BOX 1441, MINNEAPOLIS MN 55440-1441
Angela F Wordell officer: Executive VP, Operations 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Kathryn L Schoenrock officer: Executive Vice President 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Caroline M Chambers officer: Vice President and Controller PO BOX 1441, MINNEAPOLIS MN 55440-1441
Eric Etchart director ROOM F, 22F CROSS REGION PLAZA, 899 LINGLING ROAD, SHANGHAI F4 200030
Van Sant R William director PO BOX 1441, MINNEAPOLIS MN 55440-1441
Timothy R White officer: President, EMEA 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Ronita Banerjee officer: EVP, Chief HR Officer 88 11TH AVENUE NE, MINNEAPOLIS MN 55105
Jeffrey P. Johnson officer: Vice President 88 - 11TH AVENUE N.E., MINNEAPOLIS MN 55413
Heather L Anfang director 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Dale D Johnson officer: VICE PRESIDENT P.O. BOX 1441, MINNEAPOLIS MN 5440-1441
Christopher D. Knutson officer: EVP, Corporate Controller 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
Claudio Merengo officer: President, Worldwide Gema 88 11TH AVENUE NE, MINNEAPOLIS MN 55413
J Kevin Gilligan director P O BOX 1441, MINNEAPOLIS MN 55440-1441
Archie C. Black director 333 SOUTH SEVENTH STREET, SUITE 1000, MINNEAPOLIS MN 55402

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