Black Hills Corporation (BKH)

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	2,127,700	2,122,332	2,127,832	2,136,532	2,331,332	2,531,039	2,586,551	2,649,446	2,551,816	2,322,885	2,240,863	2,139,240	1,949,102	1,872,981	1,838,981	1,793,323	1,696,941	1,688,208	1,667,166	1,674,140
Property, plant and equipment	US$ in thousands	7,629,900	7,469,600	7,355,500	7,223,100	7,119,300	7,012,350	6,919,490	6,837,400	6,798,000	6,697,320	6,587,150	6,473,420	6,449,180	6,317,580	6,196,750	6,095,290	6,019,710	5,851,980	5,703,200	5,584,280
Fixed asset turnover		0.28	0.28	0.29	0.30	0.33	0.36	0.37	0.39	0.38	0.35	0.34	0.33	0.30	0.30	0.30	0.29	0.28	0.29	0.29	0.30

December 31, 2024 calculation

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

The fixed asset turnover ratio of Black Hills Corporation has shown some fluctuations over the past few years, ranging from 0.28 to 0.39. The ratio measures how efficiently the company is generating revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.

From the data provided, we observe that the fixed asset turnover ratio has generally trended upwards from 0.28 in December 2024 to 0.38 in December 2022. This suggests an improvement in the company's ability to generate sales from its fixed assets during this period.

However, there was a slight decline in the ratio from March 2023 to June 2023, followed by a more noticeable drop to 0.36 in September 2023. This dip may indicate a temporary decrease in the efficiency of utilizing fixed assets to generate revenue.

Subsequently, the ratio fluctuated around the 0.30 mark from March 2024 to December 2024, showing some stability but not reaching the highs observed in 2022.

Overall, the trend in Black Hills Corporation's fixed asset turnover ratio reflects some variability, with periods of improvement and slight regression. It is important for the company to continue monitoring and managing its fixed asset utilization to ensure optimal efficiency in generating revenue.