Duke Energy Corporation (DUK)
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 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 26,046,000 | 25,986,000 | 26,113,000 | 26,340,000 | 26,329,000 | 25,616,000 | 24,639,000 | 23,747,000 | 22,817,000 | 22,413,000 | 22,242,000 | 21,923,000 | 21,557,000 | 21,631,000 | 21,652,000 | 21,938,000 | 22,144,000 | 22,196,000 | 21,910,000 | 21,706,000 |
| Property, plant and equipment | US$ in thousands | 115,315,000 | 117,020,000 | 114,480,000 | 112,942,000 | 111,748,000 | 117,106,000 | 113,851,000 | 112,316,000 | 105,536,000 | 110,236,000 | 110,015,000 | 107,629,000 | 106,782,000 | 105,760,000 | 104,325,000 | 104,741,000 | 102,127,000 | 98,912,000 | 97,198,000 | 95,721,000 |
| Fixed asset turnover | 0.23 | 0.22 | 0.23 | 0.23 | 0.24 | 0.22 | 0.22 | 0.21 | 0.22 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $26,046,000K ÷ $115,315,000K
= 0.23
Duke Energy Corp.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 0.23 to 0.26. The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate revenue. A ratio of 0.25 indicates that for each dollar invested in fixed assets, Duke Energy Corp. generates 25 cents in revenue.
Consistently low fixed asset turnover ratios could suggest that Duke Energy Corp. may have excess or underutilized fixed assets, which could impact profitability. On the other hand, a stable ratio over time may indicate that the company has maintained a consistent level of efficiency in generating revenue from its fixed assets.
It is essential for Duke Energy Corp. to monitor and potentially optimize the utilization of its fixed assets to improve operational efficiency and overall financial performance. This could involve better asset management practices, investment in new technologies, or strategic asset divestitures to improve the fixed asset turnover ratio in the future.
Peer comparison
Dec 31, 2023