Kinder Morgan Inc (KMI)

Total 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
Total assets	US$ in thousands	71,407,000	71,020,000	70,078,000	70,416,000	71,973,000
Total asset turnover		0.21	0.22	0.27	0.24	0.16

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $15,100,000K ÷ $71,407,000K
= 0.21

Total asset turnover is a financial ratio that measures a company's ability to generate revenue in relation to its total assets. For Kinder Morgan Inc, we observe a fluctuating trend in total asset turnover over the years.

In 2020, the total asset turnover was relatively low at 0.16, indicating that Kinder Morgan generated $0.16 in revenue for every dollar of assets it owned. However, there was a significant improvement in 2021, with the total asset turnover increasing to 0.24, suggesting that the company became more efficient in utilizing its assets to generate revenue.

The positive trend continued in 2022, as the total asset turnover further increased to 0.27, reflecting an even higher level of efficiency in asset utilization. However, in 2023, there was a slight decrease in the ratio to 0.22, which might indicate some challenges or changes in the company's operations impacting its asset turnover.

By 2024, the total asset turnover rate of Kinder Morgan stood at 0.21, showing a further decline from the previous year. This decline may warrant a closer look at the company's asset management strategies to understand the factors influencing the decrease in asset turnover efficiency.

Overall, the fluctuating trend in Kinder Morgan's total asset turnover highlights the company's varying ability to generate revenue in relation to its total asset base, indicating potential changes in operational efficiency and effectiveness in utilizing its assets over the years.