DTE Energy Company (DTE)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 407,000 | 442,000 | 19,228,000 | 14,964,000 | 12,177,000 |
| Property, plant and equipment | US$ in thousands | 30,870,000 | 28,169,000 | 28,767,000 | 26,944,000 | 24,499,000 |
| Fixed asset turnover | 0.01 | 0.02 | 0.67 | 0.56 | 0.50 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $407,000K ÷ $30,870,000K
= 0.01
The fixed asset turnover ratio of DTE Energy Company has shown fluctuations over the years, as evidenced by the data provided. In December 31, 2020, the ratio stood at 0.50, indicating that the company generated $0.50 in revenue for each dollar of fixed assets invested. By December 31, 2021, the ratio improved to 0.56, suggesting slightly better efficiency in utilizing its fixed assets to generate revenue.
In December 31, 2022, the fixed asset turnover ratio further increased to 0.67, indicating a more efficient utilization of fixed assets in generating revenue compared to the previous years. However, there was a significant decline in the ratio by December 31, 2023, dropping to 0.02, implying a sharp decrease in revenue generated per dollar of fixed assets invested.
The most recent data point, as of December 31, 2024, shows a fixed asset turnover ratio of 0.01, indicating a continued decline in efficiency in generating revenue from fixed assets. It is essential for DTE Energy Company to assess the reasons behind these fluctuations in the fixed asset turnover ratio and take necessary steps to improve the efficiency of utilizing its fixed assets to drive revenue growth and profitability.
Peer comparison
Dec 31, 2024