American Electric Power Company Inc (AEP)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	18,982,300	19,639,500	16,792,000	14,918,500	15,561,400
Property, plant and equipment	US$ in thousands	76,693,400	73,339,100	66,001,300	63,901,600	60,138,100
Fixed asset turnover		0.25	0.27	0.25	0.23	0.26

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $18,982,300K ÷ $76,693,400K
= 0.25

The fixed asset turnover ratio measures the efficiency with which American Electric Power Company Inc. is utilizing its fixed assets to generate revenue. A higher ratio typically indicates better utilization of fixed assets.

Over the past five years, American Electric Power Company Inc.'s fixed asset turnover ratio has fluctuated between 0.23 and 0.28. The decrease in the ratio from 0.26 in 2019 to 0.23 in 2020 suggests a slight dip in the company's efficiency in generating revenue from its fixed assets. However, the ratio improved to 0.25 in 2021 and 2023, indicating a better utilization of fixed assets during those years.

Overall, although there have been fluctuations in the fixed asset turnover ratio, American Electric Power Company Inc. has generally maintained a relatively stable performance in efficiently generating revenue from its fixed assets over the past five years. Further analysis in conjunction with other financial metrics could provide a more comprehensive assessment of the company's operational efficiency and asset utilization.