American Water Works (AWK)

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	4,215,000	4,124,000	4,030,000	3,872,000	3,785,000	4,558,000	4,576,000	4,636,000	4,676,000	3,922,000	3,902,000	3,820,000	3,786,000	3,724,000	3,663,000	3,637,000	3,606,000	3,556,000	3,517,000	3,488,000
Property, plant and equipment	US$ in thousands	25,294,000	24,544,000	24,044,000	23,488,000	23,078,000	22,490,000	21,956,000	21,252,000	20,938,000	20,585,000	20,214,000	19,905,000	19,710,000	19,267,000	18,944,000	18,588,000	18,232,000	18,151,000	17,798,000	17,623,000
Fixed asset turnover		0.17	0.17	0.17	0.16	0.16	0.20	0.21	0.22	0.22	0.19	0.19	0.19	0.19	0.19	0.19	0.20	0.20	0.20	0.20	0.20

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,215,000K ÷ $25,294,000K
= 0.17

Fixed asset turnover is a ratio that measures a company's efficiency in generating sales from its investments in fixed assets. For American Water Works Co. Inc., the fixed asset turnover has been relatively stable over the past eight quarters, ranging between 0.16 and 0.18.

The consistent value of around 0.17 indicates that the company is able to generate approximately $0.17 in sales for every $1 invested in fixed assets. This suggests that American Water Works Co. Inc. is efficiently utilizing its fixed assets to generate revenue.

A fixed asset turnover ratio below 1 may indicate that the company is not fully utilizing its fixed assets to generate sales, while a ratio above 1 suggests higher efficiency in asset utilization. In this case, the ratio of around 0.17 indicates that American Water Works Co. Inc. may have room for improvement in optimizing the utilization of its fixed assets to increase sales generated from these investments.