The AES Corporation (AES)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 12,278,000 | 12,668,000 | 12,617,000 | 11,141,000 | 9,660,000 |
| Property, plant and equipment | US$ in thousands | 33,166,000 | 29,958,000 | 23,039,000 | 19,906,000 | 22,826,000 |
| Fixed asset turnover | 0.37 | 0.42 | 0.55 | 0.56 | 0.42 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,278,000K ÷ $33,166,000K
= 0.37
The fixed asset turnover ratio for The AES Corporation has shown some fluctuations over the years based on the provided data. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
In December 31, 2020, the fixed asset turnover was at 0.42, suggesting that for every dollar of fixed assets, the company generated $0.42 in revenue.
By December 31, 2021, the fixed asset turnover improved to 0.56, indicating an increase in the efficiency of utilizing fixed assets to generate revenue.
The ratio remained relatively stable in December 31, 2022 and December 31, 2023, at 0.55 and 0.42 respectively.
However, by December 31, 2024, the fixed asset turnover declined to 0.37, which may indicate a decrease in efficiency in utilizing fixed assets to generate revenue.
Overall, the trend in the fixed asset turnover ratio of The AES Corporation shows some variability, with improvement in some years and a decline in others. Further analysis of the company's operational and investment strategies may be required to understand the factors contributing to these fluctuations.