Kinder Morgan Inc (KMI)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	15,100,000	15,151,000	15,359,000	15,288,000	15,334,000	15,875,000	17,145,000	18,795,000	19,200,000	19,046,000	17,693,000	15,692,000	16,610,000	15,300,000	14,395,000	13,805,000	11,700,000	11,937,000	12,232,000	12,886,000
Property, plant and equipment	US$ in thousands	38,013,000	37,709,000	37,533,000	37,313,000	37,297,000	35,944,000	35,759,000	35,639,000	35,599,000	35,534,000	35,530,000	35,557,000	35,653,000	35,576,000	34,570,000	35,605,000	35,836,000	35,958,000	36,027,000	36,041,000
Fixed asset turnover		0.40	0.40	0.41	0.41	0.41	0.44	0.48	0.53	0.54	0.54	0.50	0.44	0.47	0.43	0.42	0.39	0.33	0.33	0.34	0.36

December 31, 2024 calculation

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

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. It is calculated by dividing total revenue by average fixed assets.

Analyzing the data provided for Kinder Morgan Inc, we can see that the fixed asset turnover ratio has fluctuated over the years. It was relatively low at 0.36 as of March 31, 2020, and showed a declining trend until September 30, 2021, reaching 0.33. However, there was a noticeable improvement in the ratio from March 31, 2022, onwards, reaching a peak of 0.54 on December 31, 2022.

Subsequently, the ratio experienced some fluctuation but generally remained in the range of 0.40 to 0.54 until December 31, 2024, indicating that the company was effectively utilizing its fixed assets to generate revenue during this period.

Overall, the trend in Kinder Morgan Inc's fixed asset turnover ratio suggests that the company has made improvements in efficiently utilizing its fixed assets to generate revenue over the years covered in the data provided.