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