Duke Energy Corporation (DUK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 26,046,000 | 26,329,000 | 22,817,000 | 21,706,000 | 22,144,000 |
| Property, plant and equipment | US$ in thousands | 115,315,000 | 111,748,000 | 105,536,000 | 106,782,000 | 102,127,000 |
| Fixed asset turnover | 0.23 | 0.24 | 0.22 | 0.20 | 0.22 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $26,046,000K ÷ $115,315,000K
= 0.23
The fixed asset turnover ratio for Duke Energy Corp. has fluctuated over the past five years. In 2023, the ratio stood at 0.25, showing a slight decrease compared to 0.26 in 2022. This indicates that Duke Energy generated $0.25 in revenue for every dollar invested in fixed assets.
The trend over the five-year period shows that the company's efficiency in utilizing its fixed assets to generate revenue has improved overall, as the ratio has generally increased from 0.22 in 2020 to the current level of 0.25 in 2023. However, the ratio dipped in 2021 to 0.23 before rebounding back up.
Despite the fluctuations, the fixed asset turnover ratio signifies the effectiveness of Duke Energy in generating sales from its fixed assets, with a higher ratio indicating better utilization of assets to generate revenue. It would be important for the company to continue monitoring and improving this ratio to ensure optimal efficiency in its operations.
Peer comparison
Dec 31, 2023