Edison International (EIX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,338,000 | 17,220,000 | 14,905,000 | 13,578,000 | 12,347,000 |
| Property, plant and equipment | US$ in thousands | 56,084,000 | 53,486,000 | 50,700,000 | 47,839,000 | 44,285,000 |
| Fixed asset turnover | 0.29 | 0.32 | 0.29 | 0.28 | 0.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $16,338,000K ÷ $56,084,000K
= 0.29
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Edison International's fixed asset turnover has fluctuated over the past five years, ranging from 0.28 to 0.32. A lower fixed asset turnover ratio suggests that the company is not effectively utilizing its fixed assets to generate sales.
In 2023, the fixed asset turnover decreased to 0.29 from 0.32 in 2022, indicating a decline in the company's efficiency in generating revenue from its fixed assets. However, the ratio remains relatively stable compared to previous years.
Overall, the trend in Edison International's fixed asset turnover suggests that the company may need to focus on improving the utilization of its fixed assets to enhance efficiency and profitability in the future.
Peer comparison
Dec 31, 2023