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.
Peer comparison
Dec 31, 2023