Kinder Morgan Inc (KMI)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	15,100,000	15,334,000	19,200,000	16,610,000	11,700,000
Property, plant and equipment	US$ in thousands	38,013,000	37,297,000	35,599,000	35,653,000	35,836,000
Fixed asset turnover		0.40	0.41	0.54	0.47	0.33

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,100,000K ÷ $38,013,000K
= 0.40

The fixed asset turnover ratio of Kinder Morgan Inc has shown a fluctuating trend over the past five years. Starting at 0.33 in December 31, 2020, the ratio increased to 0.47 by December 31, 2021, signaling improved efficiency in generating revenue from fixed assets. This positive trend continued into December 31, 2022, with a ratio of 0.54, indicating that the company was effectively utilizing its fixed assets to generate sales.

However, there was a slight decline in the fixed asset turnover ratio to 0.41 by December 31, 2023, suggesting a potential decrease in efficiency in utilizing fixed assets to generate revenue. This trend continued into December 31, 2024, as the ratio remained relatively stable at 0.40.

Overall, Kinder Morgan Inc should continue monitoring and evaluating its fixed asset turnover ratio to ensure optimal efficiency in utilizing its fixed assets to generate revenue and identify opportunities for improvement in asset management.