AmerisourceBergen Corp. (NYSE:ABC)

The financial data reveals several patterns related to asset utilization and turnover ratios over the six-year period.

Net Fixed Asset Turnover

This ratio displays an overall increasing trend with fluctuations. Starting at 85.18 in 2017, it rose steadily and peaked at 127.89 in 2020, reflecting improved efficiency in using fixed assets to generate revenue. However, it declined to 98.93 in 2021 and then slightly recovered to 111.75 in 2022, indicating some volatility but maintaining relatively high utilization compared to the initial years.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

When incorporating operating leases and right-of-use assets, the ratio follows a different pattern. It starts equal to the basic net fixed asset turnover in 2017 and 2018, indicating minimal impact from leases initially. The ratio then decreased significantly from 101.43 in 2019 to 98.48 in 2020, followed by a steep drop to 66.25 in 2021 and a modest increase to 77.46 in 2022. This suggests that the inclusion of lease assets affected asset efficiency metrics adversely post-2019, likely due to lease accounting changes, causing apparent reduced turnover.

Total Asset Turnover

This ratio shows a gradual decline from 4.34 in 2017 to 3.73 in 2021, implying a decreasing efficiency in generating sales from total assets over this timeframe. The ratio subsequently rose to 4.22 in 2022, indicating some recovery. Overall, the trend points to a dip in asset productivity with later improvement.

Equity Turnover

Values for equity turnover are inconsistent and partially missing. The figure declines from 74.18 in 2017 to 57.26 in 2018, then modestly rises to 62.38 in 2019. The 2020 data is missing, while a drastic spike to 958.07 is recorded in 2021, possibly reflecting an anomaly or extraordinary accounting event. The absence of a value for 2022 prevents trend analysis for that year.

In summary, asset utilization based on net fixed assets improved until 2020 before facing some declines amid lease accounting adjustments. Total asset turnover faced a downtrend with partial recovery, while equity turnover data are irregular and suggest potential distortions or one-off effects. The inclusion of operating lease assets notably altered efficiency metrics, underlining the impact of accounting changes on financial ratios.

Revenue

The revenue demonstrates a consistent upward trend over the examined period, increasing from approximately 153.1 billion USD in 2017 to 238.6 billion USD in 2022. This reflects steady growth with a notable acceleration occurring between 2020 and 2022, where annual revenue increased by around 12.5% from 2020 to 2021 and by approximately 11.5% from 2021 to 2022.

Property and equipment, net

The net value of property and equipment shows more variability across the six-year span. Starting at approximately 1.8 billion USD in 2017, there is a slight increase in 2018, followed by a decline in 2019 and continuing through 2020 where it reaches its lowest point at roughly 1.5 billion USD. Subsequently, a marked recovery and increase occur in 2021 and 2022, with values rising above previous levels to approximately 2.16 billion USD and 2.14 billion USD respectively.

Net fixed asset turnover

The net fixed asset turnover ratio, indicative of how efficiently the company utilizes its fixed assets to generate revenue, shows significant fluctuations within the period. It starts at 85.18 in 2017 and rises moderately to 88.74 in 2018, followed by a considerable increase to 101.43 in 2019 and then a peak at 127.89 in 2020. After this peak, the ratio declines to 98.93 in 2021 but recovers to 111.75 in 2022. The high turnover in 2020 suggests optimal utilization of fixed assets relative to revenue in that year, potentially influenced by the reduced asset base noted that year.

Overall Insights

The juxtaposition of financial indicators reveals that revenue growth has been strong and consistent, while investment in property and equipment experienced some contraction through 2019 and 2020, possibly reflecting strategic asset management or cost controls. The subsequent recovery in property and equipment values, along with an improving asset turnover ratio, indicates a phase of renewed investment coupled with enhanced operational efficiency in asset use. The fluctuations in fixed asset turnover particularly highlight shifts in how effectively the company leverages its asset base to support revenue.

Revenue Trend

Revenue shows a consistent upward trajectory over the six-year period from 2017 to 2022. It increased from approximately $153.1 billion to $238.6 billion, reflecting significant growth year over year. This steady increase suggests strong sales performance and expanding business operations.

Property and Equipment, Net

The net value of property and equipment, including operating lease and right-of-use assets, exhibits some variability. From 2017 to 2020, the figures remained relatively stable, ranging between roughly $1.8 billion and $1.9 billion. However, in 2021, there is a marked increase to about $3.2 billion, followed by a slight decline to approximately $3.1 billion in 2022. This jump likely indicates significant capital investments or acquisitions in the 2021 fiscal year, sustaining a high asset base thereafter.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures revenue generated per dollar invested in property and equipment, initially increased from 85.18 in 2017 to a peak of 101.43 in 2019. This upward movement suggests improving efficiency in utilizing fixed assets to generate revenue during this period. After 2019, the ratio declines sharply, reaching a low of 66.25 in 2021 before partially recovering to 77.46 in 2022. The decline corresponds with the significant rise in property and equipment, indicating that asset growth outpaced revenue increases temporarily, which may reflect recent capital expenditures not yet fully contributing to revenue generation.

Overall Insights

The data reflects robust revenue growth supported by substantial investment in fixed assets in the later years. While the company maintained or improved its asset utilization efficiency up to 2019, the subsequent decline in asset turnover ratio implies a transitional phase following heavy investment. This pattern is common when capital expenditures precede revenue realization. Continuing attention to improving the efficiency of these new assets will be crucial for sustaining profitability and return on investment.

Revenue Trends

Revenue has demonstrated a steady upward trajectory over the six-year period, increasing from approximately 153.1 billion USD in 2017 to 238.6 billion USD in 2022. This represents a consistent growth pattern with an overall increase of about 56% between 2017 and 2022. Year-over-year growth is notable, with a particularly strong increase observed between 2020 and 2021, coinciding potentially with external economic or market conditions favoring the company's revenue expansion.

Total Assets Trends

Total assets have increased significantly from 35.3 billion USD in 2017 to 56.6 billion USD in 2022, marking an overall growth of approximately 60%. The asset base saw the most pronounced growth between 2020 and 2021, jumping from 44.3 billion USD to 57.3 billion USD. However, in the latest fiscal year (2022), total assets slightly decreased compared to 2021, indicating a possible strategic realignment, asset disposal, or other operational changes.

Total Asset Turnover Analysis

The total asset turnover ratio, representing the efficiency in using assets to generate revenue, has fluctuated over the period. It increased from 4.34 times in 2017 to a peak of 4.58 in 2019, suggesting improved asset utilization efficiency. However, a decline followed, reaching a low of 3.73 in 2021. In 2022, the ratio rebounded to 4.22, indicating a recovery in efficiency though not returning to the earlier peak. The dip in 2021 might correlate with the sharp increase in assets without a proportionate increase in revenue, while the 2022 improvement suggests renewed operational efficiency or better asset management.

Overall Observations

The data indicates consistent revenue growth accompanied by a substantial expansion in asset base, with some variability in asset utilization efficiency across the years. The spike in assets in 2021 without proportional revenue growth led to a temporary efficiency decline, but subsequent improvement in 2022 suggests corrective measures or favorable business conditions enhancing asset productivity. Continuous monitoring of asset turnover alongside growth metrics is advisable to maintain balanced and efficient expansion.

Revenue

Revenue has demonstrated a consistent upward trajectory over the six-year period. Starting at approximately $153.1 billion in 2017, it increased steadily each year, reaching about $238.6 billion by 2022. This represents a significant growth in sales, indicating strong business expansion and potentially an increasing market share or enhanced product/service offerings.

Total AmerisourceBergen Corporation stockholders’ equity (deficit)

Stockholders' equity displayed fluctuations and volatility during the period. It rose from around $2.06 billion in 2017 to a peak of approximately $2.93 billion in 2018, then slightly decreased in 2019. A sharp decline occurred in 2020 resulting in a negative equity balance of roughly -$1.02 billion. The following years showed minimal recovery with equity near zero in 2021 and again dipping into a small negative amount by 2022. This pattern suggests challenges in maintaining capital or possibly significant losses, write-downs, or other financial adjustments impacting the equity base.

Equity turnover

The equity turnover ratio, which measures revenue generated per unit of equity, shows irregular patterns and incomplete data. It started extremely high at 74.18 in 2017 and decreased to 57.26 in 2018, then rose to 62.38 in 2019. Data is missing for 2020, but a substantial spike to 958.07 is observed in 2021 before the value is again missing for 2022. The anomalous 2021 figure likely results from nearly zero or negative equity, inflating the ratio. Overall, the ratio reflects instability in equity relative to revenue rather than consistent operational efficiency improvements.