Analysis of Geographic Areas
Corning Inc. operates in 4 regions: North America; Asia Pacific; Europe; and All Other.
Area Asset Turnover
Corning Inc., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| North America | 0.54 | 0.62 | 0.57 | 0.41 | 0.51 |
| Asia Pacific | 0.72 | 0.69 | 0.67 | 0.57 | 0.55 |
| Europe | 1.08 | 1.19 | 0.98 | 0.81 | 0.88 |
| All Other | 3.92 | 4.39 | 4.00 | 3.14 | 9.84 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The analysis of geographic asset turnover ratios from 2019 to 2023 reveals diverging trends in operational efficiency across different global regions. While the Asia Pacific and European markets generally demonstrate an upward trajectory in asset utilization, the North American region shows higher volatility, and the "All Other" category reflects a significant structural correction following 2019.
- Asia Pacific
- This region exhibits the most consistent growth pattern, with the asset turnover ratio increasing steadily every year from 0.55 in 2019 to 0.72 in 2023. This trend indicates a continuous improvement in the ability to generate revenue from the assets deployed in this market.
- Europe
- European operations demonstrate relatively high efficiency compared to the primary markets of North America and Asia Pacific. After a slight dip in 2020 to 0.81, the ratio climbed to a peak of 1.19 in 2022 before settling at 1.08 in 2023. The region is the only major geographic segment to maintain a ratio above 1.0 for two consecutive years, suggesting superior asset productivity.
- North America
- Asset turnover in North America is characterized by fluctuation. The ratio decreased to 0.41 in 2020, recovered to a peak of 0.62 in 2022, and subsequently declined to 0.54 in 2023. This variability suggests inconsistent asset utilization or shifts in the asset base relative to revenue generation.
- All Other Regions
- The "All Other" category shows a stark contrast to the other segments. A significant decline occurred between 2019 and 2020, where the ratio dropped from 9.84 to 3.14. Following this sharp correction, the ratio remained relatively stable, fluctuating between 3.14 and 4.39 through 2023. Despite the decline, this segment continues to maintain a substantially higher turnover ratio than the larger named geographic areas.
Overall, the data indicates a shift toward higher asset efficiency in the Asia Pacific and European markets, whereas North American performance remains unstable. The extreme volatility in the smaller geographic segments suggests a different asset structure or operational model compared to the primary strategic regions.
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Area Asset Turnover: North America
Corning Inc.; North America; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 4,840) | 5,749) | 5,104) | 3,761) | 4,092) |
| Long-lived assets | 9,004) | 9,216) | 9,003) | 9,078) | 8,047) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.54 | 0.62 | 0.57 | 0.41 | 0.51 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 4,840 ÷ 9,004 = 0.54
The operational efficiency of assets within the North American region exhibited notable volatility between 2019 and 2023, with performance driven primarily by fluctuations in net sales against a relatively stable asset base.
- Net Sales Performance
- Net sales experienced an initial contraction in 2020, falling to 3,761 million US dollars from 4,092 million US dollars in 2019. This was followed by a period of significant growth, peaking at 5,749 million US dollars in 2022, before retreating to 4,840 million US dollars by the end of 2023.
- Long-lived Assets Stability
- The asset base increased from 8,047 million US dollars in 2019 to 9,078 million US dollars in 2020. Following this expansion, the value of long-lived assets remained consistent, maintaining a range between 9,003 million and 9,216 million US dollars through 2023, suggesting a period of minimal capital expenditure or asset divestment in the region.
- Area Asset Turnover Analysis
- The area asset turnover ratio closely mirrored the trajectory of net sales due to the stagnation of the asset base. The ratio declined to a five-year low of 0.41 in 2020, reflecting a period of underutilization. Efficiency improved substantially over the next two years, reaching a peak of 0.62 in 2022, which represents the highest level of asset productivity in the analyzed period. The decline to 0.54 in 2023 indicates a reduction in the revenue-generating efficiency of the regional assets, aligning with the decrease in annual sales.
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Area Asset Turnover: Asia Pacific
Corning Inc.; Asia Pacific; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 6,999) | 7,108) | 7,357) | 6,214) | 5,869) |
| Long-lived assets | 9,658) | 10,294) | 10,948) | 10,979) | 10,700) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.72 | 0.69 | 0.67 | 0.57 | 0.55 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 6,999 ÷ 9,658 = 0.72
The Asia Pacific region demonstrates a consistent improvement in asset utilization efficiency over the five-year period ending December 31, 2023. While net sales and the asset base exhibited divergent trends, the resulting asset turnover ratio shows a steady upward trajectory, indicating an increase in the productivity of long-lived assets within the region.
- Net Sales Performance
- Revenue in the Asia Pacific area grew steadily from 2019 to 2021, rising from $5,869 million to a peak of $7,357 million. A slight contraction followed in 2022 and 2023, with sales settling at $6,999 million by the end of the period.
- Long-lived Asset Base
- The asset base remained relatively stable during the first three years, peaking at $10,979 million in 2020. From 2021 onward, a notable downward trend is observed, with assets decreasing to $9,658 million by December 31, 2023.
- Area Asset Turnover Analysis
- The asset turnover ratio increased every year, moving from 0.55 in 2019 to 0.72 in 2023. This consistent growth signifies that the region is generating more revenue for every dollar of long-lived assets employed.
The observed increase in efficiency is the result of two distinct phases. Between 2019 and 2021, the improvement was primarily driven by robust sales growth. Conversely, between 2021 and 2023, the turnover ratio continued to rise despite a slight decline in net sales; this was achieved through a more rapid reduction in the long-lived asset base. This suggests a strategic optimization of the regional asset portfolio to maintain higher productivity levels despite softening revenue growth.
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Area Asset Turnover: Europe
Corning Inc.; Europe; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 1,533) | 1,655) | 1,387) | 1,216) | 1,321) |
| Long-lived assets | 1,420) | 1,396) | 1,410) | 1,510) | 1,493) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.08 | 1.19 | 0.98 | 0.81 | 0.88 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 1,533 ÷ 1,420 = 1.08
An analysis of the European geographic area reveals a period of volatility followed by a significant improvement in asset efficiency between 2019 and 2023. The area asset turnover ratio experienced an initial decline before reaching a peak in 2022, indicating a period of optimized utilization of long-lived assets to generate revenue.
- Net Sales Performance
- Revenue in Europe exhibited fluctuations over the five-year period. Following a decrease from 1,321 million USD in 2019 to 1,216 million USD in 2020, a strong growth trajectory was observed, with sales peaking at 1,655 million USD in 2022. A subsequent moderation occurred in 2023, with sales settling at 1,533 million USD.
- Long-lived Asset Trends
- The asset base remained relatively stable between 2019 and 2020, staying near 1,500 million USD. A contraction phase followed, with assets decreasing to 1,410 million USD in 2021 and reaching a period low of 1,396 million USD in 2022. A marginal increase to 1,420 million USD was recorded in 2023.
- Area Asset Turnover Analysis
- The asset turnover ratio mirrored the combined effect of rising revenues and a reduced asset base. The ratio declined to 0.81 in 2020, but improved sharply to 0.98 in 2021 and peaked at 1.19 in 2022. While the ratio retracted to 1.08 in 2023 due to the decline in net sales and a slight increase in assets, the efficiency level remains higher than the baseline observed from 2019 through 2021.
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Area Asset Turnover: All Other
Corning Inc.; All Other; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net sales | 208) | 294) | 272) | 261) | 374) |
| Long-lived assets | 53) | 67) | 68) | 83) | 38) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.92 | 4.39 | 4.00 | 3.14 | 9.84 |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Area asset turnover = Net sales ÷ Long-lived assets
= 208 ÷ 53 = 3.92
The financial performance of the "All Other" geographic area is characterized by significant volatility in asset utilization and revenue generation between 2019 and 2023. A sharp transition occurred in 2020, marking a shift from a highly lean asset structure to one with significantly higher capital intensity, which led to a substantial decline in operational efficiency.
- Net Sales Trends
- Revenue showed a fluctuating downward trajectory over the five-year period. After a significant drop from US$ 374 million in 2019 to US$ 261 million in 2020, a period of modest recovery followed, peaking at US$ 294 million in 2022. However, this trend reversed sharply in 2023, with net sales falling to US$ 208 million, the lowest level within the analyzed timeframe.
- Long-lived Assets Evolution
- There was a dramatic increase in long-lived assets in 2020, which surged from US$ 38 million to US$ 83 million. Following this peak, the asset base underwent a steady contraction, decreasing to US$ 68 million in 2021 and continuing a downward trend to reach US$ 53 million by the end of 2023.
- Area Asset Turnover Efficiency
- The area asset turnover ratio experienced a severe contraction in 2020, falling from 9.84 to 3.14. This decline was the result of the simultaneous decrease in net sales and the rapid expansion of the long-lived asset base. Although the ratio improved gradually to 4.39 by 2022, it declined again to 3.92 in 2023, suggesting that the reduction in assets was not sufficient to offset the decline in sales revenue.
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Net sales
Corning Inc., net sales by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| North America | 4,840) | 5,749) | 5,104) | 3,761) | 4,092) |
| Asia Pacific | 6,999) | 7,108) | 7,357) | 6,214) | 5,869) |
| Europe | 1,533) | 1,655) | 1,387) | 1,216) | 1,321) |
| All Other | 208) | 294) | 272) | 261) | 374) |
| Total | 13,580) | 14,806) | 14,120) | 11,452) | 11,656) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total net sales exhibited a volatile trajectory between 2019 and 2023, characterized by a significant growth phase followed by a recent contraction. After a marginal decline in 2020, total revenue surged to a peak of US$ 14,806 million in 2022 before retreating to US$ 13,580 million in 2023. This overall pattern indicates a period of expansion that reached its zenith in 2022 across most geographic segments.
- Asia Pacific Market Performance
- The Asia Pacific region consistently serves as the primary revenue driver, maintaining the highest net sales throughout the analyzed period. Sales grew steadily from US$ 5,869 million in 2019 to a peak of US$ 7,357 million in 2021. However, a gradual downward trend is observed from 2021 through 2023, with revenues declining to US$ 6,999 million, suggesting a cooling of demand or pricing pressures in the region.
- North American Market Volatility
- North America demonstrated the most significant fluctuations in sales volume. Following a dip to US$ 3,761 million in 2020, the region experienced rapid expansion, reaching US$ 5,749 million by 2022. This growth was followed by a sharp correction in 2023, where sales fell to US$ 4,840 million, representing a decrease of approximately 15% from the previous year's peak.
- European and Other Geographic Segments
- Europe showed a general upward trend until 2022, with sales increasing from US$ 1,321 million in 2019 to a high of US$ 1,655 million in 2022, before moderating to US$ 1,533 million in 2023. The "All Other" category remained the smallest contributor to total net sales, experiencing an overall decline from US$ 374 million in 2019 to US$ 208 million in 2023, indicating a diminishing reliance on these minor markets.
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Long-lived assets
Corning Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| North America | 9,004) | 9,216) | 9,003) | 9,078) | 8,047) |
| Asia Pacific | 9,658) | 10,294) | 10,948) | 10,979) | 10,700) |
| Europe | 1,420) | 1,396) | 1,410) | 1,510) | 1,493) |
| All Other | 53) | 67) | 68) | 83) | 38) |
| Total | 20,135) | 20,973) | 21,429) | 21,650) | 20,278) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
Total long-lived assets experienced an initial increase, peaking in 2020 at 21,650 million US$, followed by a consistent three-year decline to 20,135 million US$ by the end of 2023. This trajectory indicates a period of expansion followed by a gradual reduction in the total asset base.
- North American Asset Trends
- North America saw a significant increase in long-lived assets between 2019 and 2020, rising from 8,047 million US$ to 9,078 million US$. Following this growth, the asset levels remained relatively stable, concluding the period at 9,004 million US$ in 2023.
- Asia Pacific Asset Trends
- Asia Pacific consistently held the largest volume of long-lived assets, though it exhibited a notable downward trend after 2020. From a peak of 10,979 million US$ in 2020, assets decreased steadily to 9,658 million US$ by 2023, marking a contraction of approximately 12% from its highest point.
- European and Other Regional Trends
- Assets in Europe demonstrated minimal volatility, maintaining a range between 1,396 million US$ and 1,510 million US$ throughout the five-year period. The "All Other" category remained immaterial to the total balance, with values fluctuating between 38 million US$ and 83 million US$.
- Geographic Concentration Shift
- A divergence in regional trends is evident as North American assets grew while Asia Pacific assets declined. This resulted in a narrowing of the gap between the two largest regions; the difference in long-lived assets between Asia Pacific and North America decreased from 2,653 million US$ in 2019 to 654 million US$ in 2023.
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