Black Hills Corporation (BKH)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,127,700	2,331,300	2,551,800	1,949,100	1,696,940
Property, plant and equipment	US$ in thousands	7,629,900	7,119,300	6,798,000	6,449,180	6,019,710
Fixed asset turnover		0.28	0.33	0.38	0.30	0.28

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,127,700K ÷ $7,629,900K
= 0.28

Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue from its fixed assets. In the case of Black Hills Corporation, the fixed asset turnover has shown some fluctuations over the past five years.

The fixed asset turnover ratio has increased from 0.28 in December 31, 2020, to 0.30 in December 31, 2021, indicating a slightly improved efficiency in utilizing fixed assets to generate revenue. However, a significant increase was observed in December 31, 2022, where the ratio surged to 0.38, suggesting a more efficient utilization of fixed assets during that period.

Subsequently, there was a slight decline in the fixed asset turnover to 0.33 in December 31, 2023, before dropping back to 0.28 in December 31, 2024. The drop in the ratio in the latest year might indicate a potential decrease in the company's ability to generate revenue efficiently from its fixed assets.

Overall, despite the fluctuations, the trend in Black Hills Corporation's fixed asset turnover shows some variability in the company's efficiency in utilizing its fixed assets to generate revenue over the analyzed period. Further analysis and comparison to industry benchmarks may provide additional insights into the company's operational efficiency.