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