DTE Energy Company (DTE)
Total 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 |
| Total assets | US$ in thousands | 44,755,000 | 42,683,000 | 39,719,000 | 45,496,000 | 42,268,000 |
| Total asset turnover | 0.28 | 0.45 | 0.38 | 0.27 | 0.30 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $12,745,000K ÷ $44,755,000K
= 0.28
Total asset turnover measures the efficiency of a company in generating revenue from its total assets. A higher ratio indicates that the company is more effective in using its assets to generate sales.
Looking at the trend for DTE Energy Co., we observe fluctuations in total asset turnover over the past five years. In 2023, the total asset turnover decreased to 0.28 from 0.45 in 2022, indicating a decline in the company's ability to generate revenue from its assets. This decline could be attributed to various factors, such as changes in business operations or asset management.
Comparing the ratios for the last five years, we see that the highest total asset turnover was in 2022 at 0.45, suggesting that DTE Energy Co. was more efficient in generating sales from its assets that year. However, the ratio has shown variability over the years, with 2020 and 2019 also displaying lower ratios at 0.27 and 0.30, respectively.
It is essential for DTE Energy Co. to closely monitor its total asset turnover and identify the reasons for the fluctuations to ensure optimal utilization of its assets in generating revenue. Regular analysis of this ratio can help the company assess its operational efficiency and make informed decisions regarding asset management strategies.
Peer comparison
Dec 31, 2023