Black Hills Corporation (BKH)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,331,300	2,551,800	1,949,100	1,696,940	1,734,900
Property, plant and equipment	US$ in thousands	7,119,300	6,798,000	6,449,180	6,019,710	5,503,190
Fixed asset turnover		0.33	0.38	0.30	0.28	0.32

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,331,300K ÷ $7,119,300K
= 0.33

The fixed asset turnover ratio for Black Hills Corporation has fluctuated over the past five years, ranging from 0.28 to 0.38. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenues. A higher ratio implies better utilization of assets to generate sales.

In 2023, the fixed asset turnover ratio decreased to 0.33 from 0.38 in 2022, indicating a slight decrease in the company's efficiency in generating sales from its fixed assets. Despite the decrease, the ratio remains relatively stable compared to previous years.

Over the five-year period, the company's fixed asset turnover has shown some variation, with 2022 demonstrating the highest efficiency in utilizing fixed assets to generate revenues. It is important for Black Hills Corporation to monitor and analyze the factors contributing to these fluctuations to ensure optimal asset utilization and revenue generation in the future.