Eversource Energy (ES)

Fixed asset turnover

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue US$ in thousands 11,910,700 12,289,300 9,863,080 8,904,430 8,526,500
Property, plant and equipment US$ in thousands — 36,112,800 33,377,600 30,882,500 27,585,500
Fixed asset turnover — 0.34 0.30 0.29 0.31

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $11,910,700K ÷ $—K
= —

Eversource Energy's fixed asset turnover ratio measures the efficiency with which the company generates revenue from its fixed assets. The trend analysis reveals fluctuations in the ratio over the past five years.

The fixed asset turnover ratio decreased from 0.31 in 2019 to 0.29 in 2020, indicating a decline in the company's ability to generate sales from its fixed assets. However, the ratio increased to 0.30 in 2021, before rising further to 0.34 in 2022, reflecting improved efficiency in generating sales from fixed assets.

Despite this improvement, the ratio declined once again to 0.30 in 2023. This downward trend raises some concerns about the company's effectiveness in utilizing its fixed assets to drive revenue.

Overall, Eversource Energy should continue to monitor its fixed asset turnover ratio closely to ensure that it is effectively utilizing its fixed assets to maximize revenue generation and operational efficiency.