Edison International (EIX)
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 | 16,338,000 | 16,648,000 | 17,174,000 | 17,218,000 | 17,220,000 | 16,535,000 | 16,606,000 | 15,913,000 | 14,905,000 | 14,731,000 | 14,076,000 | 13,748,000 | 13,578,000 | 13,391,000 | 12,488,000 | 12,313,000 | 12,347,000 | 12,386,000 | 12,914,000 | 12,917,000 |
| Property, plant and equipment | US$ in thousands | 56,084,000 | 55,054,000 | 54,326,000 | 54,170,000 | 53,486,000 | 52,599,000 | 51,695,000 | 51,000,000 | 50,700,000 | 49,754,000 | 48,989,000 | 48,284,000 | 47,839,000 | 46,470,000 | 45,553,000 | 44,820,000 | 44,285,000 | 43,235,000 | 42,414,000 | 41,764,000 |
| Fixed asset turnover | 0.29 | 0.30 | 0.32 | 0.32 | 0.32 | 0.31 | 0.32 | 0.31 | 0.29 | 0.30 | 0.29 | 0.28 | 0.28 | 0.29 | 0.27 | 0.27 | 0.28 | 0.29 | 0.30 | 0.31 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $16,338,000K ÷ $56,084,000K
= 0.29
Edison International's fixed asset turnover ratio, calculated by dividing net sales by average fixed assets, has exhibited consistency in the range of 0.29 to 0.32 over the past eight quarters. The relatively stable trend indicates that the company's ability to generate revenue from its fixed assets has remained steady.
A fixed asset turnover ratio below 1 typically suggests that the company is not effectively utilizing its fixed assets to generate sales. In this case, with ratios consistently below 1, it may indicate that Edison International could potentially improve the efficiency of its fixed asset utilization in revenue generation.
It would be beneficial for the company to assess its fixed asset management strategies and consider ways to enhance the productivity of its fixed assets to drive revenue growth. Additionally, comparing the industry average for fixed asset turnover could provide valuable insights into how Edison International's performance in this aspect stacks up against its peers.
Peer comparison
Dec 31, 2023