Evergy Inc. Common Stock (EVRG)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	5,508,200	5,859,100	5,586,700	4,913,400	5,147,800
Property, plant and equipment	US$ in thousands	23,595,100	22,136,500	21,002,600	19,951,000	19,184,400
Fixed asset turnover		0.23	0.26	0.27	0.25	0.27

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,508,200K ÷ $23,595,100K
= 0.23

The fixed asset turnover ratio for Evergy Inc has fluctuated over the past five years, ranging from 0.23 to 0.27. This ratio measures how efficiently the company is generating revenue from its fixed assets. A higher ratio indicates better efficiency in utilizing fixed assets to generate sales revenue.

The decreasing trend in the fixed asset turnover ratio from 0.27 in 2019 to 0.23 in 2023 suggests that Evergy Inc may be experiencing challenges in maximizing the productivity and revenue generation from its fixed assets over the years. This could be a result of underutilization of fixed assets, inefficient asset management, or other operational issues.

Investors and analysts should closely monitor Evergy Inc's efforts to improve its fixed asset turnover ratio as it indicates the company's ability to generate sales from its fixed assets effectively. A consistent focus on improving asset utilization and operational efficiency could help enhance the company's overall financial performance and profitability in the future.