The AES Corporation (AES)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 12,668,000 | 12,760,000 | 12,953,000 | 13,004,000 | 12,617,000 | 12,327,000 | 11,736,000 | 11,358,000 | 11,141,000 | 10,931,000 | 10,440,000 | 9,957,000 | 9,660,000 | 9,531,000 | 9,611,000 | 9,877,000 | 10,189,000 | 10,380,000 | 10,592,000 | 10,646,000 |
| Property, plant and equipment | US$ in thousands | 29,958,000 | 27,535,000 | 26,077,000 | 24,213,000 | 23,039,000 | 21,597,000 | 20,753,000 | 20,453,000 | 19,906,000 | 22,788,000 | 22,582,000 | 22,498,000 | 22,826,000 | 22,287,000 | 22,836,000 | 22,570,000 | 22,574,000 | 21,853,000 | 21,565,000 | 21,228,000 |
| Fixed asset turnover | 0.42 | 0.46 | 0.50 | 0.54 | 0.55 | 0.57 | 0.57 | 0.56 | 0.56 | 0.48 | 0.46 | 0.44 | 0.42 | 0.43 | 0.42 | 0.44 | 0.45 | 0.47 | 0.49 | 0.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,668,000K ÷ $29,958,000K
= 0.42
The fixed asset turnover ratio for AES Corp. has shown a declining trend over the past eight quarters, from 0.56 in Q1 2022 to 0.42 in Q4 2023. This indicates that AES Corp. is generating less revenue relative to its fixed assets in recent quarters.
A fixed asset turnover ratio below 1 suggests inefficiency in utilizing fixed assets to generate revenue. The decreasing trend could be a cause for concern as it may indicate declining efficiency in asset utilization or potential underperformance in revenue generation.
AES Corp. should closely monitor and evaluate its fixed asset management strategies to improve the efficiency of its fixed asset utilization and increase revenue generation moving forward. Implementing measures to optimize asset utilization and improve operational efficiency could help reverse the declining trend in the fixed asset turnover ratio.