California Water Service Group (CWT)

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	747,613	735,174	747,860	761,503	804,187	797,818	769,379	775,750	750,020	819,771	805,304	766,295	755,324	656,603	650,604	644,504	626,578	622,617	615,748	621,513
Property, plant and equipment	US$ in thousands	4,748	3,248,320	—	3,103,440	5,803	2,987,610	2,934,680	2,887,420	7,083	2,796,370	2,746,610	2,684,940	2,650,560	2,596,310	2,537,820	2,446,970	2,409,870	2,357,600	2,316,450	14,128
Fixed asset turnover		157.46	0.23	—	0.25	138.58	0.27	0.26	0.27	105.89	0.29	0.29	0.29	0.28	0.25	0.26	0.26	0.26	0.26	0.27	43.99

December 31, 2023 calculation

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

Fixed asset turnover is a measure used to assess how efficiently a company is utilizing its fixed assets to generate revenue. Looking at the data provided, California Water Service Group's fixed asset turnover has been relatively stable over the past eight quarters, ranging from 0.21 to 0.28.

A fixed asset turnover ratio of less than 1 indicates that the company is generating less revenue per dollar of fixed assets, which suggests lower efficiency in utilizing its assets. In the case of California Water Service Group, the ratios are consistently below 1, indicating that the company may not be optimizing its fixed assets to generate revenue efficiently.

The slight fluctuations in the fixed asset turnover ratio over the quarters suggest some variability in how effectively the company is utilizing its fixed assets to generate revenue. It would be essential for California Water Service Group to further analyze its asset management practices to identify areas for improvement and potentially enhance its fixed asset turnover in the future.