CenterPoint Energy Inc (CNP)
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 | 8,696,000 | 9,225,000 | 9,268,000 | 9,337,000 | 9,321,000 | 8,924,000 | 8,770,000 | 8,568,000 | 8,352,000 | 8,092,000 | 7,965,000 | 7,798,000 | 7,418,000 | 8,594,000 | 8,630,000 | 8,713,000 | 8,775,000 | 8,581,000 | 9,135,000 | 9,663,000 |
| Property, plant and equipment | US$ in thousands | 29,853,000 | 29,171,000 | 28,454,000 | 27,598,000 | 27,143,000 | 25,910,000 | 25,015,000 | 24,213,000 | 23,484,000 | 22,614,000 | 22,096,000 | 22,739,000 | 22,362,000 | 21,735,000 | 21,348,000 | 20,978,000 | 20,624,000 | 20,328,000 | 19,932,000 | 19,512,000 |
| Fixed asset turnover | 0.29 | 0.32 | 0.33 | 0.34 | 0.34 | 0.34 | 0.35 | 0.35 | 0.36 | 0.36 | 0.36 | 0.34 | 0.33 | 0.40 | 0.40 | 0.42 | 0.43 | 0.42 | 0.46 | 0.50 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,696,000K ÷ $29,853,000K
= 0.29
Centerpoint Energy Inc.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging between 0.29 and 0.35. The fixed asset turnover ratio measures how efficiently the company generates revenue from its fixed assets. A lower ratio indicates that the company is not generating as much revenue relative to its investment in fixed assets.
In the case of Centerpoint Energy Inc., the fixed asset turnover has been in the range of 0.29 to 0.35, which suggests that the company is generating approximately $0.29 to $0.35 in revenue for every dollar invested in fixed assets. This indicates that the company may not be efficiently utilizing its fixed assets to generate revenue compared to other companies in the industry.
Furthermore, the stability of the ratio over the quarters indicates that the efficiency of utilizing fixed assets has not shown significant improvement or deterioration. It would be beneficial for Centerpoint Energy Inc. to analyze the underlying factors contributing to the fixed asset turnover and explore opportunities to enhance the efficiency of its fixed asset utilization in order to improve financial performance.
Peer comparison
Dec 31, 2023