CenterPoint Energy Inc (CNP)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,696,000 | 9,321,000 | 8,352,000 | 7,418,000 | 7,564,000 |
| Total assets | US$ in thousands | 39,715,000 | 38,546,000 | 37,679,000 | 33,471,000 | 35,529,000 |
| Total asset turnover | 0.22 | 0.24 | 0.22 | 0.22 | 0.21 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,696,000K ÷ $39,715,000K
= 0.22
Centerpoint Energy Inc.'s total asset turnover ratio has exhibited a downward trend over the last five years. In 2023, the total asset turnover ratio stands at 0.22, a decrease from 0.24 in the prior year and 0.35 in 2019. This indicates that the company generated $0.22 in sales for every $1 of total assets in 2023.
The declining trend in total asset turnover suggests that Centerpoint Energy Inc. may be less efficient in utilizing its assets to generate revenue. A lower ratio may indicate inefficiencies in managing assets or difficulties in generating sufficient sales.
Further analysis and comparison with industry peers would be necessary to determine the underlying reasons for the decreasing total asset turnover and to assess the company's overall effectiveness in utilizing its assets to drive revenue generation.
Peer comparison
Dec 31, 2023