DT Midstream Inc (DTM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 922,000 | 920,000 | 840,000 |
| Property, plant and equipment | US$ in thousands | 4,434,000 | 3,806,000 | 3,490,000 |
| Fixed asset turnover | 0.21 | 0.24 | 0.24 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $922,000K ÷ $4,434,000K
= 0.21
DT Midstream Inc's fixed asset turnover has been relatively stable over the past four years, ranging between 0.21 and 0.24. The fixed asset turnover ratio measures how efficiently the company generates revenue from its fixed assets. A higher ratio indicates that the company is generating more revenue per dollar invested in fixed assets.
In this case, the trend in DT Midstream Inc's fixed asset turnover shows that the company is generating approximately $0.21 to $0.24 in revenue for every dollar invested in fixed assets. While a higher ratio would indicate better efficiency in utilizing fixed assets, the stability of the ratio suggests that the company's operations have been consistent in this aspect over the period under consideration.
Overall, DT Midstream Inc's fixed asset turnover ratio indicates a reasonable level of efficiency in generating revenue from its fixed assets, although there may be opportunities for improvement to enhance this efficiency further.
Peer comparison
Dec 31, 2023