FirstEnergy Corporation (FE)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	12,870,000	12,459,000	11,132,000	10,790,000	11,035,000
Property, plant and equipment	US$ in thousands	38,412,000	36,285,000	34,744,000	33,294,000	31,650,000
Fixed asset turnover		0.34	0.34	0.32	0.32	0.35

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $12,870,000K ÷ $38,412,000K
= 0.34

Firstenergy Corp.'s fixed asset turnover has remained relatively stable over the past five years, ranging from 0.32 to 0.35. Fixed asset turnover measures the company's ability to generate revenue from its investments in fixed assets. A fixed asset turnover ratio of 0.34 indicates that for each dollar invested in fixed assets, the company generates approximately $0.34 in revenue.

The consistency in the fixed asset turnover ratio suggests that Firstenergy Corp. has been able to efficiently utilize its fixed assets to generate revenue. However, the ratio is on the lower side, indicating that the company may have room for improvement in optimizing its fixed asset utilization to generate higher revenues.

Overall, a stable fixed asset turnover ratio signals that Firstenergy Corp. has been effectively managing its fixed assets to support its revenue generation activities over the analyzed period.