Dominion Energy Inc (D)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,393,000 | 13,938,000 | 13,964,000 | 14,172,000 | 14,401,000 |
| Property, plant and equipment | US$ in thousands | 58,780,000 | 52,312,000 | 59,774,000 | 57,848,000 | 57,200,000 |
| Fixed asset turnover | 0.24 | 0.27 | 0.23 | 0.24 | 0.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,393,000K ÷ $58,780,000K
= 0.24
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. Dominion Energy Inc's fixed asset turnover has fluctuated over the past five years, with values of 0.24 in 2023, 0.27 in 2022, 0.23 in 2021, 0.24 in 2020, and 0.24 in 2019.
The trend indicates that Dominion Energy Inc has been relatively consistent in generating revenue from its fixed assets, although there was a slight decrease in 2021. A fixed asset turnover ratio below 1 suggests that the company may not be fully utilizing its fixed assets to generate revenue efficiently. However, it is important to consider the nature of Dominion Energy Inc's industry, as utility companies typically have lower fixed asset turnover ratios due to the nature of their operations.
Overall, Dominion Energy Inc's fixed asset turnover indicates that the company may have room for improvement in optimizing the utilization of its fixed assets to enhance revenue generation. Further analysis of the company's operational efficiency and asset management strategies could provide insights into potential areas for enhancement in the future.
Peer comparison
Dec 31, 2023