Edison International (EIX)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,599,000 | 16,338,000 | 17,220,000 | 14,905,000 | 13,578,000 |
| Property, plant and equipment | US$ in thousands | — | — | 1,654,000 | 50,700,000 | 47,839,000 |
| Fixed asset turnover | — | — | 10.41 | 0.29 | 0.28 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,599,000K ÷ $—K
= —
Fixed Asset Turnover is an important financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Edison International, the trend in Fixed Asset Turnover over the years shows significant fluctuations.
In 2020, the Fixed Asset Turnover ratio was 0.28, indicating that for every dollar of fixed assets, the company generated 0.28 dollars of revenue. This relatively low ratio suggests that the company may not have been utilizing its fixed assets efficiently to generate revenue during that period.
By 2021, the Fixed Asset Turnover ratio improved slightly to 0.29, which could indicate a small increase in revenue generation from fixed assets. However, the ratio still remains relatively low compared to industry standards.
The most significant jump in Fixed Asset Turnover occurred in 2022, where the ratio soared to 10.41. Such a high ratio suggests that Edison International significantly improved its efficiency in utilizing fixed assets to generate revenue during that year. This substantial increase could be attributed to various factors such as operational enhancements, capital investments, or changes in business strategies.
The lack of data for 2023 and 2024 makes it difficult to assess the trend further. It is important for Edison International to maintain or improve its Fixed Asset Turnover ratio in the future to ensure sustainable and efficient use of its fixed assets for revenue generation. Additional information and context about the company's operations and industry benchmarks would provide further insights into the significance of the fluctuations in Fixed Asset Turnover observed in the data.
Peer comparison
Dec 31, 2024