Chesapeake Utilities Corporation (CPK)

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 670,604 672,570 672,076 675,953 680,704 653,767 630,049 601,661 569,968 546,642 540,726 526,695 488,198 483,134 474,341 471,832 479,606 481,846 482,620 481,950
Property, plant and equipment US$ in thousands 2,456,370 1,908,260 1,871,180 1,836,700 1,810,470 1,794,040 1,773,800 1,755,380 1,744,880 1,699,710 1,672,890 1,635,700 1,601,180 1,567,350 1,525,360 1,491,730 1,463,800 1,460,950 1,421,020 1,395,130
Fixed asset turnover 0.27 0.35 0.36 0.37 0.38 0.36 0.36 0.34 0.33 0.32 0.32 0.32 0.30 0.31 0.31 0.32 0.33 0.33 0.34 0.35

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $670,604K ÷ $2,456,370K
= 0.27

To analyze Chesapeake Utilities Corp's fixed asset turnover, we can see a fluctuating trend over the past eight quarters. The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover indicates better efficiency in generating sales from fixed assets.

Looking at the data provided, we observe that Chesapeake Utilities Corp's fixed asset turnover has shown some variability, ranging from a low of 0.27 in Q4 2023 to a high of 0.38 in Q4 2022. Overall, the company's fixed asset turnover has been relatively stable around the 0.34 to 0.38 range over the past two years.

The declining trend seen in the most recent quarters may indicate that Chesapeake Utilities Corp is becoming less efficient in utilizing its fixed assets to generate sales revenue. This could be a cause for concern as a lower fixed asset turnover may suggest that the company is not effectively utilizing its resources to drive revenue growth.

It would be advisable for Chesapeake Utilities Corp to closely monitor and evaluate its fixed asset management strategies to improve efficiency and productivity in utilizing fixed assets to generate sales revenue in the future. A thorough review of asset utilization practices and potential investment in upgrading or optimizing fixed assets may help enhance the company's overall operational performance and financial results.


Peer comparison

Dec 31, 2023

Company name
Symbol
Fixed asset turnover
Chesapeake Utilities Corporation
CPK
0.27
ONEOK Inc
OKE
0.52
Southwest Gas Holdings Inc
SWX