Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Regeneron Pharmaceuticals Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
A consistent downward trend is observed across all three activity ratios – net fixed asset turnover, total asset turnover, and equity turnover – throughout the analyzed period spanning from March 31, 2022, to December 31, 2025. This suggests a decreasing efficiency in utilizing assets to generate revenue.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a decline from 4.64 in March 2022 to 2.80 in December 2025. The rate of decline appeared more pronounced in the earlier part of the period, slowing down towards the end. This indicates that the company is generating less revenue for each dollar invested in fixed assets over time.
- Total Asset Turnover
- The total asset turnover ratio decreased from 0.63 in March 2022 to 0.35 in December 2025. Similar to the net fixed asset turnover, the most significant decrease occurred between March 2022 and December 2022. The ratio then exhibited a more gradual decline. This suggests a diminishing ability to generate sales from all assets held by the company.
- Equity Turnover
- The equity turnover ratio followed a similar pattern, decreasing from 0.83 in March 2022 to 0.46 in December 2025. The decline was relatively consistent throughout the period, although the magnitude of the decrease appeared to lessen in the final quarters. This indicates that the company is generating less revenue for each dollar of shareholder equity.
The parallel downward trends in all three ratios suggest a systemic shift in the company’s operational efficiency. Further investigation would be required to determine the underlying causes, such as changes in sales strategies, asset management practices, or industry-specific factors. The consistent decline warrants attention as it could potentially impact profitability and return on investment.
Net Fixed Asset Turnover
Regeneron Pharmaceuticals Inc., net fixed asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Revenues | 3,884,300) | 3,754,300) | 3,675,600) | 3,028,700) | 3,789,200) | 3,720,700) | 3,547,100) | 3,145,000) | 3,434,300) | 3,362,700) | 3,158,100) | 3,162,100) | 3,414,400) | 2,936,200) | 2,857,200) | 2,965,100) | |||||
| Property, plant, and equipment, net | 5,120,400) | 5,002,300) | 4,840,700) | 4,694,200) | 4,599,700) | 4,439,200) | 4,305,900) | 4,225,500) | 4,146,400) | 4,006,100) | 3,922,600) | 3,880,900) | 3,763,000) | 3,704,200) | 3,637,700) | 3,556,400) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Net fixed asset turnover1 | 2.80 | 2.85 | 2.94 | 3.00 | 3.09 | 3.12 | 3.13 | 3.10 | 3.16 | 3.27 | 3.23 | 3.19 | 3.23 | 3.70 | 3.91 | 4.64 | |||||
| Benchmarks | |||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | 10.88 | 11.04 | 10.95 | 10.97 | 10.80 | 10.95 | 10.92 | 10.89 | 11.18 | 11.33 | 11.51 | 11.76 | 11.82 | 11.57 | 11.18 | |||||
| Amgen Inc. | — | 4.78 | 4.89 | 4.91 | 4.89 | 5.06 | 4.85 | 4.70 | 4.53 | 4.61 | 4.58 | 4.56 | 4.57 | 4.73 | 4.77 | 4.75 | |||||
| Bristol-Myers Squibb Co. | — | 6.54 | 6.47 | 6.60 | 6.77 | 6.87 | 6.79 | 6.75 | 6.77 | 6.93 | 7.11 | 7.30 | 7.38 | 7.74 | 7.90 | 7.77 | |||||
| Danaher Corp. | — | 4.51 | 4.52 | 4.66 | 4.78 | 4.90 | 5.08 | 5.20 | 5.25 | 6.01 | 6.68 | 7.31 | 7.96 | 8.40 | 8.12 | 7.94 | |||||
| Eli Lilly & Co. | — | 2.66 | 2.59 | 2.65 | 2.63 | 2.53 | 2.62 | 2.64 | 2.64 | 2.70 | 2.62 | 2.63 | 2.81 | 3.14 | 3.18 | 3.22 | |||||
| Gilead Sciences Inc. | — | 5.19 | 5.26 | 5.27 | 5.28 | 5.22 | 5.17 | 5.13 | 5.07 | 4.88 | 4.91 | 4.88 | 4.93 | 5.01 | 5.13 | 5.18 | |||||
| Johnson & Johnson | — | 4.13 | 4.13 | 4.28 | 4.33 | 4.28 | 4.38 | 4.36 | 4.28 | 4.65 | 4.37 | 4.58 | 4.79 | 5.29 | 5.21 | 5.07 | |||||
| Merck & Co. Inc. | — | 2.51 | 2.52 | 2.58 | 2.70 | 2.69 | 2.69 | 2.66 | 2.61 | 2.63 | 2.62 | 2.66 | 2.77 | 2.89 | 2.85 | 2.73 | |||||
| Pfizer Inc. | — | 3.33 | 3.40 | 3.40 | 3.46 | 3.26 | 2.97 | 2.98 | 3.14 | 3.88 | 4.48 | 5.46 | 6.17 | 6.47 | 6.64 | 6.12 | |||||
| Thermo Fisher Scientific Inc. | — | 4.30 | 4.48 | 4.60 | 4.61 | 4.50 | 4.56 | 4.56 | 4.54 | 4.74 | 4.68 | 4.68 | 4.84 | 5.12 | 5.02 | 4.87 | |||||
| Vertex Pharmaceuticals Inc. | — | 8.23 | 8.55 | 8.57 | 8.98 | 9.51 | 8.61 | 8.68 | 8.51 | 8.59 | 8.47 | 8.28 | 8.06 | 7.78 | 7.59 | 7.18 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net fixed asset turnover
= (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
÷ Property, plant, and equipment, net
= (3,884,300 + 3,754,300 + 3,675,600 + 3,028,700)
÷ 5,120,400 = 2.80
2 Click competitor name to see calculations.
The net fixed asset turnover ratio demonstrates a consistent downward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially, the ratio exhibited values in the mid-to-high 3.0s and 4.0s, but progressively declined to the 2.80 range by the end of the analyzed timeframe.
- Overall Trend
- A clear decreasing pattern is evident. The ratio began at 4.64 in March 2022 and concluded at 2.80 in December 2025. This indicates a diminishing efficiency in generating revenue from the company’s net fixed assets.
- Initial Phase (March 2022 – December 2022)
- The ratio experienced a substantial decrease from 4.64 to 3.23 during this period. This initial decline suggests a potential increase in net fixed assets relative to revenue, or a slowdown in revenue growth compared to asset investment. The largest single-quarter decrease occurred between September and December 2022.
- Stabilization and Continued Decline (March 2023 – December 2024)
- From March 2023 through December 2024, the ratio fluctuated within a relatively narrow range, generally between 3.09 and 3.27. While not exhibiting significant quarter-to-quarter changes, the ratio continued its overall downward trajectory. This suggests that while the rate of decline slowed, the underlying trend remained consistent.
- Final Phase (March 2025 – December 2025)
- The final quarters witnessed a more pronounced decline, moving from 3.00 in March 2025 to 2.80 in December 2025. This acceleration in the downward trend could indicate increased investment in fixed assets without a corresponding increase in revenue, or a more significant slowdown in revenue generation.
The consistent decline in the net fixed asset turnover ratio warrants further investigation. Potential contributing factors could include increased capital expenditures, slower revenue growth, or a shift in business strategy requiring more asset-intensive operations. Understanding the drivers behind this trend is crucial for assessing the company’s operational efficiency and long-term profitability.
Total Asset Turnover
Regeneron Pharmaceuticals Inc., total asset turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Revenues | 3,884,300) | 3,754,300) | 3,675,600) | 3,028,700) | 3,789,200) | 3,720,700) | 3,547,100) | 3,145,000) | 3,434,300) | 3,362,700) | 3,158,100) | 3,162,100) | 3,414,400) | 2,936,200) | 2,857,200) | 2,965,100) | |||||
| Total assets | 40,558,700) | 40,169,400) | 38,219,200) | 37,545,200) | 37,759,400) | 37,441,900) | 36,086,800) | 34,369,600) | 33,080,200) | 32,163,300) | 30,657,500) | 30,059,900) | 29,214,500) | 27,677,800) | 27,205,800) | 26,348,700) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Total asset turnover1 | 0.35 | 0.35 | 0.37 | 0.38 | 0.38 | 0.37 | 0.37 | 0.38 | 0.40 | 0.41 | 0.41 | 0.41 | 0.42 | 0.50 | 0.52 | 0.63 | |||||
| Benchmarks | |||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | 0.45 | 0.43 | 0.42 | 0.42 | 0.39 | 0.39 | 0.37 | 0.40 | 0.40 | 0.41 | 0.42 | 0.42 | 0.41 | 0.40 | 0.40 | |||||
| Amgen Inc. | — | 0.38 | 0.38 | 0.37 | 0.35 | 0.34 | 0.32 | 0.30 | 0.28 | 0.28 | 0.28 | 0.28 | 0.38 | 0.38 | 0.41 | 0.41 | |||||
| Bristol-Myers Squibb Co. | — | 0.50 | 0.50 | 0.52 | 0.52 | 0.51 | 0.49 | 0.46 | 0.47 | 0.49 | 0.48 | 0.49 | 0.48 | 0.48 | 0.47 | 0.46 | |||||
| Danaher Corp. | — | 0.30 | 0.29 | 0.30 | 0.31 | 0.29 | 0.30 | 0.28 | 0.28 | 0.29 | 0.33 | 0.35 | 0.37 | 0.39 | 0.38 | 0.36 | |||||
| Eli Lilly & Co. | — | 0.52 | 0.53 | 0.55 | 0.57 | 0.54 | 0.54 | 0.56 | 0.53 | 0.55 | 0.54 | 0.52 | 0.58 | 0.62 | 0.62 | 0.62 | |||||
| Gilead Sciences Inc. | — | 0.49 | 0.52 | 0.51 | 0.48 | 0.52 | 0.52 | 0.48 | 0.43 | 0.44 | 0.44 | 0.43 | 0.43 | 0.43 | 0.43 | 0.43 | |||||
| Johnson & Johnson | — | 0.48 | 0.47 | 0.46 | 0.49 | 0.49 | 0.48 | 0.50 | 0.51 | 0.53 | 0.47 | 0.47 | 0.51 | 0.55 | 0.54 | 0.53 | |||||
| Merck & Co. Inc. | — | 0.50 | 0.54 | 0.56 | 0.55 | 0.54 | 0.55 | 0.58 | 0.56 | 0.56 | 0.56 | 0.54 | 0.54 | 0.55 | 0.53 | 0.51 | |||||
| Pfizer Inc. | — | 0.30 | 0.31 | 0.30 | 0.30 | 0.28 | 0.26 | 0.25 | 0.26 | 0.32 | 0.36 | 0.48 | 0.51 | 0.51 | 0.52 | 0.50 | |||||
| Thermo Fisher Scientific Inc. | — | 0.42 | 0.43 | 0.43 | 0.44 | 0.42 | 0.43 | 0.44 | 0.43 | 0.45 | 0.46 | 0.46 | 0.46 | 0.49 | 0.47 | 0.44 | |||||
| Vertex Pharmaceuticals Inc. | — | 0.47 | 0.48 | 0.49 | 0.49 | 0.48 | 0.51 | 0.43 | 0.43 | 0.44 | 0.47 | 0.49 | 0.49 | 0.52 | 0.54 | 0.56 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Total asset turnover
= (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
÷ Total assets
= (3,884,300 + 3,754,300 + 3,675,600 + 3,028,700)
÷ 40,558,700 = 0.35
2 Click competitor name to see calculations.
The total asset turnover ratio for the analyzed period demonstrates a consistent downward trend, albeit with some stabilization in recent quarters. Initially, the ratio exhibited a decline from 0.63 in March 2022 to 0.42 in December 2022. This suggests a decreasing efficiency in generating revenue from the company’s asset base. The ratio then remained relatively stable between 0.40 and 0.41 for the first three quarters of 2023, before continuing its decline.
- Overall Trend
- A clear, sustained decrease in total asset turnover is evident throughout the observed timeframe. The ratio decreased from 0.63 in March 2022 to 0.35 in December 2025, representing a substantial reduction in asset utilization efficiency.
- Initial Decline (March 2022 - December 2022)
- The most significant drop occurred within the first year of the period, falling from 0.63 to 0.42. This could indicate increased investment in assets that have not yet translated into proportional revenue growth, or a decrease in sales relative to the asset base.
- Stabilization and Continued Decline (2023-2025)
- Following the initial decline, the ratio experienced a period of relative stability between 0.40 and 0.41 during much of 2023. However, this plateau was followed by a renewed downward trend, reaching 0.35 by the end of 2025. This suggests that the factors contributing to the initial decline may be ongoing or have been exacerbated.
- Recent Performance (March 2024 - December 2025)
- The ratio fluctuated between 0.37 and 0.38 for the first three quarters of 2024, before decreasing to 0.35 in the final quarter of 2025. This recent performance suggests a continued weakening in the relationship between revenue and total assets.
The consistent decline in the total asset turnover ratio warrants further investigation to determine the underlying causes. Potential factors could include changes in the company’s asset mix, increased working capital requirements, or a slowdown in revenue growth relative to asset investment. Understanding these drivers is crucial for assessing the company’s operational efficiency and long-term financial performance.
Equity Turnover
Regeneron Pharmaceuticals Inc., equity turnover calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Revenues | 3,884,300) | 3,754,300) | 3,675,600) | 3,028,700) | 3,789,200) | 3,720,700) | 3,547,100) | 3,145,000) | 3,434,300) | 3,362,700) | 3,158,100) | 3,162,100) | 3,414,400) | 2,936,200) | 2,857,200) | 2,965,100) | |||||
| Stockholders’ equity | 31,256,900) | 30,957,800) | 29,938,900) | 29,387,600) | 29,353,600) | 29,325,900) | 28,205,800) | 26,991,100) | 25,973,100) | 24,904,400) | 24,017,900) | 23,495,200) | 22,664,000) | 21,438,800) | 20,687,800) | 19,914,700) | |||||
| Long-term Activity Ratio | |||||||||||||||||||||
| Equity turnover1 | 0.46 | 0.46 | 0.47 | 0.48 | 0.48 | 0.47 | 0.48 | 0.49 | 0.51 | 0.53 | 0.53 | 0.53 | 0.54 | 0.64 | 0.69 | 0.83 | |||||
| Benchmarks | |||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | — | — | 40.40 | 16.94 | 9.21 | 8.11 | 6.79 | 5.24 | 4.56 | 4.35 | 4.27 | 3.36 | 3.62 | 3.91 | 3.48 | |||||
| Amgen Inc. | — | 3.59 | 4.51 | 5.28 | 5.45 | 4.14 | 4.99 | 5.61 | 4.32 | 3.35 | 3.73 | 4.66 | 6.77 | 6.71 | 10.17 | 26.68 | |||||
| Bristol-Myers Squibb Co. | — | 2.59 | 2.74 | 2.74 | 2.96 | 2.77 | 2.73 | 2.76 | 1.53 | 1.55 | 1.41 | 1.44 | 1.49 | 1.43 | 1.45 | 1.49 | |||||
| Danaher Corp. | — | 0.48 | 0.46 | 0.47 | 0.48 | 0.46 | 0.47 | 0.44 | 0.45 | 0.49 | 0.54 | 0.58 | 0.63 | 0.67 | 0.66 | 0.65 | |||||
| Eli Lilly & Co. | — | 2.50 | 2.91 | 3.11 | 3.17 | 2.87 | 2.87 | 2.80 | 3.17 | 2.86 | 2.67 | 2.47 | 2.68 | 2.90 | 3.40 | 3.14 | |||||
| Gilead Sciences Inc. | — | 1.33 | 1.46 | 1.49 | 1.48 | 1.52 | 1.51 | 1.56 | 1.18 | 1.22 | 1.28 | 1.27 | 1.27 | 1.27 | 1.34 | 1.37 | |||||
| Johnson & Johnson | — | 1.16 | 1.15 | 1.14 | 1.24 | 1.25 | 1.21 | 1.22 | 1.24 | 1.23 | 1.20 | 1.30 | 1.24 | 1.29 | 1.25 | 1.27 | |||||
| Merck & Co. Inc. | — | 1.24 | 1.30 | 1.32 | 1.39 | 1.42 | 1.43 | 1.52 | 1.60 | 1.44 | 1.51 | 1.24 | 1.29 | 1.33 | 1.32 | 1.32 | |||||
| Pfizer Inc. | — | 0.68 | 0.72 | 0.69 | 0.72 | 0.65 | 0.64 | 0.61 | 0.67 | 0.71 | 0.79 | 0.92 | 1.05 | 1.08 | 1.16 | 1.12 | |||||
| Thermo Fisher Scientific Inc. | — | 0.86 | 0.86 | 0.87 | 0.86 | 0.86 | 0.89 | 0.93 | 0.92 | 0.96 | 0.99 | 1.04 | 1.02 | 1.01 | 1.01 | 1.00 | |||||
| Vertex Pharmaceuticals Inc. | — | 0.68 | 0.66 | 0.67 | 0.67 | 0.68 | 0.70 | 0.55 | 0.56 | 0.58 | 0.61 | 0.64 | 0.64 | 0.67 | 0.70 | 0.73 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Equity turnover
= (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
÷ Stockholders’ equity
= (3,884,300 + 3,754,300 + 3,675,600 + 3,028,700)
÷ 31,256,900 = 0.46
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a consistent downward trend, albeit with diminishing rate of decline over time. Initially, the ratio exhibited a more pronounced decrease, while later periods show a stabilization at a lower level. This suggests a decreasing efficiency in generating revenue from the company’s equity base.
- Overall Trend
- From March 31, 2022, to December 31, 2025, the equity turnover ratio declined from 0.83 to 0.46. The most significant decrease occurred between March 31, 2022, and December 31, 2022, falling from 0.83 to 0.54. The rate of decline slowed considerably after September 30, 2023, with the ratio fluctuating between 0.46 and 0.51.
- Initial Decline (2022)
- The initial period, spanning from March 31, 2022, to December 31, 2022, witnessed a substantial reduction in the equity turnover ratio. This suggests that, during this time, the company’s revenues were not growing as quickly as its stockholders’ equity. This could be due to increased equity financing, retained earnings, or a combination of both, without a corresponding proportional increase in revenue.
- Stabilization (2023-2025)
- From March 31, 2023, through December 31, 2025, the equity turnover ratio exhibited a period of relative stability, hovering around the 0.46-0.51 range. While still representing a lower level of efficiency compared to the beginning of the analyzed period, the stabilization indicates that the relationship between revenue and equity has become more consistent. The slight fluctuations within this range are likely attributable to normal business variations.
- Revenue and Equity Relationship
- The observed trend suggests that the company is either reinvesting equity at a rate that exceeds revenue growth, or that equity is increasing due to factors other than operational performance. Further investigation into the components of equity and the drivers of revenue growth would be necessary to determine the underlying causes of this trend. The consistent decline implies that a larger equity base is required to generate each dollar of revenue.
In conclusion, the equity turnover ratio indicates a decreasing efficiency in utilizing equity to generate revenue. While the rate of decline has slowed, the overall trend warrants further scrutiny to understand the underlying factors and potential implications for long-term financial performance.