Knife River Corporation (KNF)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | ||
|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,830,347 | |||
| Property, plant and equipment | US$ in thousands | 1,315,050 | 1,299,540 | 1,311,470 | 1,317,370 |
| Fixed asset turnover | 2.15 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,830,347K ÷ $1,315,050K
= 2.15
Fixed asset turnover is a financial ratio that provides insight into how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets.
Based on the data provided, Knife River Corporation's fixed asset turnover for the most recent period ending December 31, 2023, is 2.15. This indicates that for every dollar invested in fixed assets, the company is generating $2.15 in sales.
A fixed asset turnover ratio of 2.15 suggests that Knife River Corporation is efficiently utilizing its fixed assets to generate revenue. A higher ratio generally indicates better efficiency in asset utilization and could be a positive signal to investors and creditors.
However, it is essential to compare this ratio with industry averages and historical data for the company to gain a more thorough understanding of its performance in utilizing fixed assets effectively.
Peer comparison
Dec 31, 2023