American Electric Power Company Inc (AEP)

Total 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
Total assets	US$ in thousands	96,684,000	93,403,300	87,668,700	80,757,200	75,892,300
Total asset turnover		0.20	0.21	0.19	0.18	0.21

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $18,982,300K ÷ $96,684,000K
= 0.20

American Electric Power Company Inc.'s total asset turnover ratio has varied over the last five years, ranging from 0.18 to 0.21. In 2023, the total asset turnover decreased to 0.20 from 0.21 in 2022. This suggests that the company generated $0.20 of revenue for every dollar of assets in 2023.

While the decrease in total asset turnover may indicate a potential decline in efficiency in utilizing its assets to generate revenue, it is essential to consider the industry average and compare it with the company's historical performance to determine the significance of this change. Additionally, further analysis is necessary to understand the underlying factors contributing to the variation in the total asset turnover ratio over the years.