American Water Works (AWK)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 4,649,000 | 4,503,000 | 4,345,000 | 4,293,000 | 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 |
| Property, plant and equipment | US$ in thousands | 27,895,000 | 26,863,000 | 26,388,000 | 25,879,000 | 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 |
| Fixed asset turnover | 0.17 | 0.17 | 0.16 | 0.17 | 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 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,649,000K ÷ $27,895,000K
= 0.17
The fixed asset turnover ratio for American Water Works has fluctuated over the past few years. It stood at 0.20 as of March 31, 2020, and gradually decreased to 0.16 by June 30, 2024. This ratio indicates the company's ability to generate revenue from its investment in fixed assets.
A lower fixed asset turnover ratio may suggest inefficiency in asset utilization, potentially due to underutilization of fixed assets or a decrease in sales relative to the value of fixed assets. In contrast, a higher ratio would imply better asset productivity.
Overall, the trend in American Water Works' fixed asset turnover ratio indicates a slight decline over the period, reflecting potential challenges in effectively leveraging their fixed assets to generate sales revenue. Further analysis would be needed to understand the factors driving this trend and to assess the company's operational efficiency and asset management strategies.
Peer comparison
Dec 31, 2024