American Electric Power Co Inc (AEP)

Fixed asset turnover

Dec 31, 2024 Sep 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 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Revenue (ttm) US$ in thousands 19,719,300 20,364,700 19,317,100 18,982,300 19,286,200 19,470,600 19,737,800 19,639,500 18,819,800 17,916,700 17,103,500 16,792,000 16,341,200 15,784,600 15,452,100 14,918,500 14,923,900 15,172,500 15,252,100 15,561,400
Property, plant and equipment US$ in thousands 714,900 80,073,800 77,796,000 564,300 75,821,100 74,681,400 73,347,000 73,339,100 69,813,100 68,708,200 67,878,000 66,001,300 66,691,200 65,664,500 64,696,100 63,901,600 62,786,400 61,926,800 61,048,900 60,138,100
Fixed asset turnover 27.58 0.25 0.25 33.64 0.25 0.26 0.27 0.27 0.27 0.26 0.25 0.25 0.25 0.24 0.24 0.23 0.24 0.25 0.25 0.26

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $19,719,300K ÷ $714,900K
= 27.58

The fixed asset turnover ratio for American Electric Power Co Inc has shown relatively stable performance over the period from December 31, 2019, to December 31, 2024. The ratio ranged between 0.23 and 0.27 from December 31, 2019, to December 31, 2023, indicating that the company generated between $0.23 and $0.27 in sales for every dollar invested in fixed assets during this period.

However, there was a significant anomaly in the ratio on December 31, 2023, when it spiked to 33.64. This anomaly could be due to various factors such as a large one-time sale, a revaluation of fixed assets, or a data reporting error. It is important to investigate this anomaly further to understand the underlying reasons for such a drastic change in the ratio.

Following the anomalous spike, the fixed asset turnover ratio returned to a more typical range between 0.25 and 0.27 for the subsequent periods up to December 31, 2024. This stability suggests that the company's efficiency in utilizing its fixed assets to generate sales has been consistent, with minor fluctuations within an acceptable range.

In conclusion, while the fixed asset turnover ratio of American Electric Power Co Inc exhibited stable performance with occasional anomalies, stakeholders should monitor any significant deviations from the norm to ensure the efficiency of the company's fixed asset utilization remains optimal.