Kirby Corporation (KEX)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	3,047,864	2,978,815	2,959,644	2,883,549	2,748,750	2,612,051	2,466,984	2,328,190	2,210,984	2,118,857	2,025,957	2,015,773	2,171,408	2,337,579	2,507,821	2,737,704	2,838,399	2,903,965	2,942,001	2,973,630
Property, plant and equipment	US$ in thousands	3,861,100	3,782,120	3,697,940	3,665,510	3,633,460	3,640,690	3,652,650	3,660,310	3,678,520	3,705,250	3,862,810	3,881,270	3,917,070	3,958,140	3,976,020	3,776,780	3,777,110	3,793,730	3,796,420	3,792,440
Fixed asset turnover		0.79	0.79	0.80	0.79	0.76	0.72	0.68	0.64	0.60	0.57	0.52	0.52	0.55	0.59	0.63	0.72	0.75	0.77	0.77	0.78

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,047,864K ÷ $3,861,100K
= 0.79

The fixed asset turnover ratio for Kirby Corp. has been relatively stable over the past eight quarters, ranging from 0.64 to 0.81. This ratio measures how efficiently the company generates revenue from its fixed assets.

The consistent values around 0.80 indicate that Kirby Corp. has been able to generate a consistent level of revenue relative to its investment in fixed assets. A fixed asset turnover ratio above 1 would suggest that the company is generating more revenue from its fixed assets than the assets are worth, but with values below 1, Kirby Corp. is not fully maximizing the utilization of its fixed assets.

Overall, the stability of the fixed asset turnover ratio suggests that Kirby Corp. has been maintaining a consistent level of efficiency in utilizing its fixed assets to generate revenue. However, the company may seek opportunities to improve its asset utilization further to increase its overall profitability.