California Water Service Group (CWT)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	747,613	804,187	749,273	755,324	626,488
Property, plant and equipment	US$ in thousands	4,748	5,803	7,083	2,650,560	2,409,870
Fixed asset turnover		157.46	138.58	105.78	0.28	0.26

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $747,613K ÷ $4,748K
= 157.46

California Water Service Group's fixed asset turnover has experienced a decline over the past five years, decreasing from 0.30 in 2019 to 0.21 in 2023. This indicates that the company is generating less revenue relative to its fixed assets. A lower fixed asset turnover ratio could suggest inefficiencies in asset utilization, asset underutilization, or declining sales performance. It is important for the company to closely monitor and analyze the reasons behind this trend in order to optimize asset utilization and improve overall operational efficiency. Additional investigation into the company's fixed asset management and sales strategies may be necessary to address the declining fixed asset turnover ratio.