California Water Service Group (CWT)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,036,810	794,632	846,431	790,909	794,307
Property, plant and equipment	US$ in thousands	—	—	261,775	2,846,860	2,650,560
Fixed asset turnover		—	—	3.23	0.28	0.30

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,036,810K ÷ $—K
= —

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided for California Water Service Group, we can see a fluctuation in the fixed asset turnover ratio over the years.

As of December 31, 2020, the fixed asset turnover ratio was 0.30, indicating that for every dollar invested in fixed assets, the company generated $0.30 in revenue. This suggests that the company may not have been efficiently utilizing its fixed assets to generate revenue during that period.

By December 31, 2021, the fixed asset turnover ratio decreased slightly to 0.28, which could indicate a further decline in the efficiency of utilizing fixed assets to generate revenue.

However, by December 31, 2022, there was a significant improvement in the fixed asset turnover ratio, soaring to 3.23. This substantial increase suggests that the company was able to generate $3.23 in revenue for every dollar invested in fixed assets, indicating a much higher efficiency in asset utilization compared to the prior years.

The data for December 31, 2023, and December 31, 2024, is not available, which makes it difficult to assess the trend over these years.

In conclusion, the fixed asset turnover ratio for California Water Service Group has shown fluctuations, with a notable improvement in 2022. It would be essential for the company to consistently monitor and improve its efficiency in utilizing fixed assets to generate revenue for sustainable growth and profitability.