DTE Energy Company (DTE)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	12,745,000	19,228,000	14,964,000	12,177,000	12,669,000
Property, plant and equipment	US$ in thousands	28,169,000	28,767,000	26,944,000	24,499,000	25,317,000
Fixed asset turnover		0.45	0.67	0.56	0.50	0.50

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,745,000K ÷ $28,169,000K
= 0.45

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenues from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.

Looking at DTE Energy Co.'s fixed asset turnover over the past five years, we can see fluctuations in the ratio. In 2023, the fixed asset turnover ratio decreased to 0.45 from 0.67 in 2022. This decrease may indicate that DTE Energy Co. was less efficient in generating sales from its fixed assets during 2023 compared to the previous year.

However, it is important to note that the fixed asset turnover ratio of 0.45 in 2023 is still higher than the ratios in 2020 and 2019, indicating an improvement in efficiency over the longer term. This suggests that DTE Energy Co. has been gradually increasing its ability to generate revenues from its investment in fixed assets over the past few years.

Overall, while there was a slight decrease in fixed asset turnover in 2023, the longer-term trend shows improvement in the company's efficiency in utilizing its fixed assets to generate sales.