AmerisourceBergen Corp. (NYSE:ABC)

The analysis of key turnover ratios over multiple quarters reveals several noteworthy trends and fluctuations. These ratios reflect the efficiency in utilizing assets and equity to generate revenue.

Net Fixed Asset Turnover

This ratio generally shows an increasing trend from the end of 2017 through 2020, rising from approximately 85 to about 132. This indicates improving efficiency in generating sales from fixed assets during this period. However, there is a marked decline starting mid-2021, with the ratio dropping to around 95 and then gradually increasing again to approximately 118 by mid-2023. The observed dip suggests some reduction in asset utilization efficiency before a partial recovery.

Total Asset Turnover

The total asset turnover ratio displays modest fluctuations over the observed timeline. Initially, it remains relatively stable between 4.15 and 4.61 up to late 2019. A decline occurs starting in early 2020, bottoming around 3.65 in late 2020 to early 2021, indicative of reduced asset efficiency. Subsequently, this ratio trends upward once more, nearing the 4.2 mark by mid-2023, reflecting a recovery but not a full return to earlier peak levels.

Equity Turnover

The equity turnover ratio is characterized by substantial volatility and data inconsistencies. The ratio fluctuates between roughly 48 and 62 from late 2017 until early 2020, after which there are significant data gaps. Post-gap values show extreme spikes reaching very high and erratic figures such as over 5,000 and near 900 at various points in the early 2020s, which may indicate calculation anomalies or extraordinary financial events impacting equity utilization. The lack of consistent data limits definitive trend analysis for this ratio.

In summary, asset turnover ratios demonstrate periods of strengthening efficiency followed by declines and partial recoveries, with the net fixed asset turnover showing notable mid-cycle variation. Total asset turnover reflects a similar cyclical pattern but with less pronounced volatility. Equity turnover figures are irregular and possibly affected by data quality issues, thereby restricting reliable interpretation. The overall patterns suggest shifts in operational effectiveness and asset management dynamics over the reviewed quarters.

The financial data reflects a dynamic performance pattern over the observed periods, revealing key trends in revenue, property and equipment net values, and net fixed asset turnover ratios.

Revenue

The revenue displayed a generally upward trajectory across the periods, increasing from approximately $40.47 billion at the end of 2017 to around $66.95 billion by mid-2023. While there were minor fluctuations, such as a slight decline in early 2019 and during some quarters in 2020, the overall trend is growth. Notably, there was a significant surge in the latter part of 2021 and continuing into 2022 and 2023, indicating an acceleration in revenue generation.

Property and Equipment, Net

The net book value of property and equipment exhibited moderate variability with an initial range near $1.83 billion to $2.14 billion by mid-2023. Early years showed steadiness around $1.8 to $1.9 billion, with a marked decline evident around 2019 to about $1.44 billion. Following this, there was a considerable increase by the third quarter of 2021, reaching approximately $2.14 billion, which then stabilized near that level through mid-2023. This pattern suggests substantial investment or capital expenditures starting in 2021, potentially supporting revenue growth.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover, which measures how efficiently the company utilizes its fixed assets to generate revenue, demonstrated an overall increasing pattern despite some declines. Initially, the ratio improved from about 85 times at the end of 2017 to a peak above 132 times in the first half of 2021. This high was followed by a notable decrease in the latter half of 2021 to a low near 95 times, but the ratio began to recover steadily afterward, reaching approximately 118 times by mid-2023. The fluctuations may indicate shifts in operational efficiency and asset utilization corresponding to changes in asset base and revenue.

The financial data reveals several notable trends in key metrics over the observed periods. Revenue demonstrates a generally upward trajectory, indicating consistent growth in sales over the years. Beginning at approximately 40.5 billion US dollars in late 2017, revenue increased steadily, with some fluctuations, surpassing 66.9 billion US dollars by mid-2023. This trend suggests an overall expansion in the company's operational scale or market demand.

Total assets also exhibit an overall growth trend but with less pronounced fluctuations compared to revenue. Starting near 36.4 billion US dollars at the end of 2017, total assets increased progressively to about 61.2 billion US dollars by mid-2023. This rise in asset base could reflect investments in property, equipment, or other resources to support business growth. However, the increments display some variability, with occasional periods of slower growth or slight decreases, indicating possible asset divestitures or revaluations at certain points.

The total asset turnover ratio, which measures the efficiency of asset use to generate revenue, shows a declining trend from 2017 to 2021, followed by a modest recovery. Initially, the ratio was relatively high at around 4.27 and fluctuated mildly in the early periods, reaching its peak near 4.61 in mid-2019. Afterward, there is a noticeable decrease to approximately 3.65 by late 2021, suggesting a reduction in asset utilization efficiency during this span. From 2022 onward, the ratio progressively improved, rising above 4.0 and stabilizing around 4.16 by mid-2023. This indicates a partial restoration in the ability of the company to generate revenue from its asset base.

Overall, the data points to a growth strategy focused on expanding sales and asset holdings, with a temporary decline in asset efficiency that has since begun to recover. These patterns are indicative of dynamic operational adjustments and investments, with an emphasis on leveraging assets more effectively in recent periods to sustain revenue growth.

The quarterly financial data exhibits several notable trends across revenue, stockholders’ equity, and equity turnover.

Revenue

Revenue figures indicate a general upward trend over the analyzed periods. From December 2017 through December 2018, revenue increased steadily from approximately $40.5 billion to $45.4 billion. Despite some fluctuations in early 2019, overall revenue continued to grow, surpassing $47.8 billion by the end of 2019.

During 2020, revenue initially declined in the first two quarters but recovered in the second half of the year, reaching a peak of approximately $52.5 billion by year's end. This recovery trend persisted into 2021 and 2022, with revenue consistently growing and achieving approximately $61.1 billion by the end of 2022. The first two quarters of 2023 continued this pattern, with revenue reaching nearly $67 billion.

Overall, revenue growth demonstrates resilience with some variability, particularly around the early 2020 period, likely reflecting external market conditions.

Total Stockholders’ Equity

Equity exhibits more volatility compared to revenue. From December 2017 through March 2020, stockholders’ equity showed a generally positive and increasing trend, rising from approximately $2.9 billion to about $3.6 billion.

From mid-2020 to early 2021, equity faced significant declines, dipping into negative territory with values as low as approximately -$1 billion in September 2020 and persistent deficits up to March 2022. This period reflects considerable financial strain or adjustments impacting shareholders' equity.

Post-March 2022, equity began recovering, returning to positive figures by June 2023, reaching around $686 million. However, the equity levels remained below those seen in the earlier years, suggesting ongoing challenges or restructuring efforts.

Equity Turnover

Equity turnover values display large fluctuations and some data irregularities. Early values from December 2017 until March 2020 ranged moderately between approximately 48 and 62, indicating relatively stable turnover of equity during that timeframe.

From the end of 2020 through 2022, the ratios show extreme spikes reaching exceptionally high values (e.g., over 5,300), followed by sharp declines but remaining volatile. This irregularity may be influenced by the negative equity values during this period, causing the ratio to behave anomalously.

Toward mid-2023, equity turnover stabilizes somewhat but remains elevated relative to earlier years, reflecting ongoing volatility in the relationship between revenue and equity.

In summary, revenue has generally trended upward with resilience through market fluctuations. Conversely, total stockholders’ equity has been volatile, experiencing a significant negative phase before partial recovery in recent quarters. Equity turnover ratios were stable initially but showed large variability and spikes correlating with equity deficits, indicating underlying financial instability during that period. The data suggests an ongoing transition phase with improving revenue but still-recovering equity positions.