DTE Energy Company (DTE)
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 | 407,000 | 430,000 | 392,000 | 319,000 | 442,000 | 4,774,000 | 9,922,000 | 14,776,000 | 19,228,000 | 19,399,000 | 17,863,000 | 16,168,000 | 15,369,000 | 14,010,000 | 13,579,000 | 12,933,000 | 12,177,000 | 12,037,000 | 11,872,000 | 12,177,000 |
| Property, plant and equipment | US$ in thousands | 30,870,000 | 30,068,000 | 29,445,000 | 28,585,000 | 28,169,000 | 27,528,000 | 29,696,000 | 29,187,000 | 28,767,000 | 28,099,000 | 27,735,000 | 27,266,000 | 26,944,000 | 26,157,000 | 29,140,000 | 28,272,000 | 24,499,000 | 27,159,000 | 26,724,000 | 26,236,000 |
| Fixed asset turnover | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.17 | 0.33 | 0.51 | 0.67 | 0.69 | 0.64 | 0.59 | 0.57 | 0.54 | 0.47 | 0.46 | 0.50 | 0.44 | 0.44 | 0.46 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $407,000K ÷ $30,870,000K
= 0.01
The fixed asset turnover ratio reflects the efficiency with which a company's fixed assets are being utilized to generate sales. A higher ratio indicates that a company is generating more revenue per dollar of fixed assets.
Analyzing the fixed asset turnover of DTE Energy Company over the provided periods, we observe a fluctuating trend. The ratio started at 0.46 on March 31, 2020, and generally increased gradually until reaching 0.69 on September 30, 2022. This upward trend suggests an improvement in the company's efficiency in utilizing its fixed assets to generate revenue over this period.
However, starting from March 31, 2023, the fixed asset turnover ratio experienced a significant decline, dropping to 0.01 by December 31, 2024. This sharp decrease may indicate that the company's sales revenue generated from fixed assets has substantially decreased compared to the investment in those assets. A fixed asset turnover ratio of 0.01 suggests that DTE Energy Company may not be effectively utilizing its fixed assets, which could potentially lead to lower profitability and operational inefficiencies.
Further analysis is necessary to understand the reasons behind this significant decline in the fixed asset turnover ratio and to assess the potential impact on DTE Energy Company's overall financial performance and operational efficiency.
Peer comparison
Dec 31, 2024