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.
Peer comparison
Dec 31, 2023