American Water Works (AWK)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,653,000 | 4,217,000 | 3,782,000 | 4,677,000 | 3,777,000 |
| Property, plant and equipment | US$ in thousands | 27,895,000 | 25,294,000 | 23,078,000 | 20,938,000 | 19,710,000 |
| Fixed asset turnover | 0.17 | 0.17 | 0.16 | 0.22 | 0.19 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,653,000K ÷ $27,895,000K
= 0.17
The fixed asset turnover ratio for American Water Works has fluctuated over the past five years. It stood at 0.19 as of December 31, 2020, then increased to 0.22 by December 31, 2021, indicating improved efficiency in generating revenue from fixed assets. However, in the following years, the ratio declined to 0.16 by December 31, 2022, and remained relatively stable at 0.17 for both December 31, 2023, and December 31, 2024. This suggests that the company may be experiencing challenges in maximizing the productivity of its fixed assets in recent years, potentially impacting its overall operational performance and profitability. Further analysis of the underlying factors influencing this trend would be necessary to determine the specific drivers behind the fluctuations in American Water Works' fixed asset turnover ratio.
Peer comparison
Dec 31, 2024