Black Hills Corporation (BKH)

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	2,331,300	2,531,007	2,586,493	2,649,405	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	1,734,900	1,758,442	1,754,873	1,776,689
Property, plant and equipment	US$ in thousands	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	5,503,190	5,323,440	5,092,510	4,939,940
Fixed asset turnover		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	0.32	0.33	0.34	0.36

December 31, 2023 calculation

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

The fixed asset turnover ratio measures how efficiently Black Hills Corporation is generating revenue from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is using its assets more effectively to generate sales.

Analyzing the trend of Black Hills Corporation's fixed asset turnover ratio over the past eight quarters, we can observe a fluctuating pattern. The ratio has ranged from 0.33 to 0.39, with some quarters showing improvements while others displaying slight declines.

In Q1 2022, the fixed asset turnover ratio was 0.33, which remained relatively consistent in the subsequent quarters. However, starting from Q4 2022, there was a gradual increase in the ratio, reaching its peak at 0.39 in Q1 2023. This indicates that Black Hills Corporation was able to generate more sales revenue relative to its investment in fixed assets during that period.

Although there was a slight decrease in the fixed asset turnover ratio in the following quarters, it remained relatively stable above 0.33, indicating continued efficiency in utilizing fixed assets to generate revenue.

Overall, the trend in Black Hills Corporation's fixed asset turnover ratio suggests that the company has been reasonably effective in managing its fixed assets to support revenue generation. However, further analysis of the company's operational efficiency and asset utilization may provide more insights into its overall performance.