American States Water Company (AWR)

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	595,699	595,886	579,174	544,381	491,528	482,785	484,556	490,363	498,853	506,429	503,362	496,226	488,243	477,036	477,844	481,213	473,869	471,881	461,567	443,821
Property, plant and equipment	US$ in thousands	1,892,280	1,850,470	1,814,060	1,780,460	1,753,770	1,718,150	1,683,490	1,649,860	1,626,000	1,594,550	1,570,630	1,542,420	1,512,040	1,479,110	1,456,400	1,432,400	1,415,700	1,378,370	1,355,660	1,325,500
Fixed asset turnover		0.31	0.32	0.32	0.31	0.28	0.28	0.29	0.30	0.31	0.32	0.32	0.32	0.32	0.32	0.33	0.34	0.33	0.34	0.34	0.33

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $595,699K ÷ $1,892,280K
= 0.31

American States Water Co.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 0.28 to 0.32. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. In this case, the company generates approximately $0.31 to $0.32 of revenue for every dollar invested in fixed assets.

A fixed asset turnover ratio of around 0.30 indicates that the company is able to generate revenue efficiently using its fixed assets. A higher ratio would indicate better utilization of fixed assets, and a lower ratio would suggest inefficiency in generating revenue from these assets.

Overall, the consistency of the fixed asset turnover ratio over the quarters suggests that American States Water Co. has been effectively using its fixed assets to generate revenue, which is a positive indicator of operational efficiency and asset management.