FirstEnergy Corporation (FE)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,472,000 | 12,870,000 | 12,459,000 | 11,132,000 | 10,790,000 |
| Property, plant and equipment | US$ in thousands | — | — | 1,955,000 | 34,744,000 | 33,339,000 |
| Fixed asset turnover | — | — | 6.37 | 0.32 | 0.32 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,472,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of FirstEnergy Corporation, the fixed asset turnover ratio remained relatively stable at 0.32 for the years ending December 31, 2020 and 2021. This indicates that for each dollar invested in fixed assets, the company generated $0.32 in sales.
However, there was a significant improvement in efficiency in the year ending December 31, 2022, with the fixed asset turnover ratio increasing to 6.37. This sharp increase suggests that FirstEnergy was able to generate substantially more revenue per dollar of fixed assets invested, indicating a more efficient use of its fixed assets.
The data for the years 2023 and 2024 is not available (denoted by "—"), so it is not possible to analyze the trend in fixed asset turnover for those years. Overall, the significant improvement in 2022 suggests that FirstEnergy Corporation made positive strides in utilizing its fixed assets more effectively to drive revenue generation.
Peer comparison
Dec 31, 2024