Alliant Energy Corp (LNT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,027,000 | 4,205,000 | 3,669,000 | 3,416,000 | 3,648,000 |
| Property, plant and equipment | US$ in thousands | 17,157,000 | 16,247,000 | 14,987,000 | 14,336,000 | 13,527,000 |
| Fixed asset turnover | 0.23 | 0.26 | 0.24 | 0.24 | 0.27 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,027,000K ÷ $17,157,000K
= 0.23
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue relative to its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
For Alliant Energy Corp., the fixed asset turnover ratio has exhibited a declining trend over the past five years. In 2023, the fixed asset turnover ratio decreased to 0.23 from 0.26 in 2022. This suggests that the company generated $0.23 in revenue for every dollar invested in fixed assets in 2023.
The declining trend in the fixed asset turnover ratio may signal potential inefficiencies in asset utilization or a decrease in the company's ability to generate revenue from its fixed assets. It is essential for Alliant Energy Corp. to monitor and improve its efficiency in utilizing fixed assets to maintain or improve the ratio in the future.
Overall, a decreasing fixed asset turnover ratio for Alliant Energy Corp. may warrant further investigation into the company's operational efficiency and asset management strategies to enhance profitability and overall financial performance.
Peer comparison
Dec 31, 2023