DT Midstream Inc (DTM)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 922,000 | 921,000 | 922,000 | 925,000 | 920,000 | 900,000 | 877,000 | 858,000 | |||
| Property, plant and equipment | US$ in thousands | 4,434,000 | 4,348,000 | 4,181,000 | 4,000,000 | 3,806,000 | 3,630,000 | 3,500,000 | 3,482,000 | 3,490,000 | 3,483,000 | 3,470,000 |
| Fixed asset turnover | 0.21 | 0.21 | 0.22 | 0.23 | 0.24 | 0.25 | 0.25 | 0.25 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $922,000K ÷ $4,434,000K
= 0.21
The fixed asset turnover ratio for DT Midstream Inc has been relatively stable over the past eight quarters, ranging from 0.21 to 0.25. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A lower ratio suggests that the company is not effectively using its assets to generate sales, while a higher ratio indicates better asset utilization.
In this case, the consistent range of 0.21 to 0.25 suggests that DT Midstream Inc has been maintaining a moderate level of efficiency in generating revenue from its fixed assets. However, the slight downward trend from Q1 2023 to Q4 2023 may indicate a potential dip in asset efficiency. It is important for the company to closely monitor and potentially optimize its asset utilization to ensure sustainable growth and profitability in the long run.
Peer comparison
Dec 31, 2023