California Water Service Group (CWT)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 1,036,806 1,029,123 984,536 934,281 794,632 781,057 792,388 804,538 846,431 818,820 809,236 816,165 790,909 806,735 854,120 816,481 794,307 782,033 710,462 714,009
Property, plant and equipment US$ in thousands — — — — — 3,248,320 — 3,103,440 3,056,820 2,987,610 2,934,680 2,887,420 2,846,860 2,796,370 2,746,610 2,684,940 2,650,560 2,596,310 2,537,820 2,446,970
Fixed asset turnover — — — — — 0.24 — 0.26 0.28 0.27 0.28 0.28 0.28 0.29 0.31 0.30 0.30 0.30 0.28 0.29

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,036,806K ÷ $—K
= —

The fixed asset turnover ratio of California Water Service Group has shown a declining trend over the past few years, starting at 0.29 in March 2020 and dropping to 0.26 by March 2023. This indicates that the company is generating less revenue in relation to its investment in fixed assets.

The variation in the fixed asset turnover ratio could be attributed to changes in the efficiency of asset utilization, management decisions regarding capital investments, or shifts in the company's revenue generation strategies.

The decreasing trend in fixed asset turnover may raise concerns about the company's operational efficiency and the effectiveness of its asset management. It suggests that California Water Service Group may need to review its asset utilization strategies and operational practices to improve its return on investment in fixed assets.

Further monitoring of the fixed asset turnover ratio will be important to assess if this downward trend continues and to evaluate the company's efforts in optimizing its asset utilization and operational performance.