Consolidated Edison Inc (ED)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,663,000 | 15,670,000 | 13,676,000 | 12,246,000 | 12,574,000 |
| Property, plant and equipment | US$ in thousands | 49,608,000 | 46,766,000 | 48,596,000 | 46,555,000 | 43,889,000 |
| Fixed asset turnover | 0.30 | 0.34 | 0.28 | 0.26 | 0.29 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,663,000K ÷ $49,608,000K
= 0.30
Consolidated Edison, Inc.'s fixed asset turnover ratio has fluctuated over the past five years, ranging from 0.26 in 2020 to 0.34 in 2022. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio is generally preferred as it suggests that the company is generating more sales per dollar invested in fixed assets.
The decreasing trend in fixed asset turnover from 2022 to 2023, dropping from 0.34 to 0.30, may indicate a decrease in the company's efficiency in utilizing its fixed assets to generate sales. This could be a point of concern that management may need to address to improve operational efficiency and maximize returns on its fixed asset investments.
Furthermore, comparing the fixed asset turnover ratio to industry benchmarks and historical performance can provide additional insights into Consolidated Edison, Inc.'s operational efficiency and competitiveness within the sector. Monitoring this ratio over time and in conjunction with other financial metrics can help stakeholders assess the company's performance and make informed decisions.
Peer comparison
Dec 31, 2023