Atmos Energy Corporation (ATO)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	4,165,190	4,275,360	4,201,660	3,407,490	2,821,140
Property, plant and equipment	US$ in thousands	—	19,829,900	17,240,200	15,064,000	13,355,300
Fixed asset turnover		—	0.22	0.24	0.23	0.21

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,165,190K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by the average fixed assets over a specific period.

The trend analysis of Atmos Energy Corporation's fixed asset turnover over the past five years shows a relatively stable performance. From 2020 to 2022, the company's fixed asset turnover improved from 0.21 to 0.24, indicating an increase in the efficiency of utilizing fixed assets to generate revenue. However, in 2023 and 2024, there was a slight decline in the fixed asset turnover ratio to 0.22, suggesting a potential slowdown in efficiency in utilizing fixed assets.

It is important to note that a higher fixed asset turnover ratio is generally preferred as it indicates that the company is generating more revenue per dollar invested in fixed assets. However, a low fixed asset turnover ratio may point to underutilization of fixed assets or inefficiencies in generating revenue from those assets.

Further analysis and comparison with industry benchmarks can provide more insights into the efficiency of Atmos Energy Corporation in utilizing its fixed assets to drive revenue generation.