American Water Works (AWK)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	4,217,000	3,782,000	4,677,000	3,777,000	3,606,000
Property, plant and equipment	US$ in thousands	25,294,000	23,078,000	20,938,000	19,710,000	18,232,000
Fixed asset turnover		0.17	0.16	0.22	0.19	0.20

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,217,000K ÷ $25,294,000K
= 0.17

The fixed asset turnover ratio for American Water Works Co. Inc. has fluctuated over the past five years, ranging from 0.16 to 0.20. This ratio measures the efficiency of the company in generating revenue from its fixed assets.

In 2023, the fixed asset turnover ratio was 0.17, indicating that the company generated $0.17 in revenue for every dollar invested in fixed assets during the year. This represents a slight increase from the previous year's ratio of 0.16.

While the 2023 ratio is relatively low compared to historical values, it is important to consider the nature of the company's operations, as utilities typically require significant investments in infrastructure and fixed assets. The stability of the ratio over the past few years suggests that American Water Works Co. Inc. has been able to effectively utilize its fixed assets to generate revenue.

Overall, the fixed asset turnover ratio provides insight into how efficiently the company is utilizing its fixed assets to generate revenue, and while the ratio may vary from year to year, a consistent trend in this ratio could indicate the company's ability to efficiently manage its asset base.