MDU Resources Group Inc (MDU)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,657,340 | 4,441,780 | 5,680,730 | 5,532,750 | 5,336,780 |
| Property, plant and equipment | US$ in thousands | 5,120,910 | 4,776,330 | 5,756,390 | 5,166,940 | 4,917,140 |
| Fixed asset turnover | 0.91 | 0.93 | 0.99 | 1.07 | 1.09 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,657,340K ÷ $5,120,910K
= 0.91
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales.
MDU Resources Group Inc's fixed asset turnover has displayed some variability over the past five years. In 2023, the fixed asset turnover ratio decreased to 0.91 from 1.14 in 2022, indicating a decrease in the company's ability to generate sales from its fixed assets. This drop could be attributed to various factors, such as changes in sales volume, asset impairment, or inefficiencies in asset utilization.
Comparing to the previous years, the fixed asset turnover ratio in 2023 is on the lower side, below the ratios of 2021, 2020, and 2019. This suggests that MDU Resources Group Inc may need to review its fixed asset management strategies to improve asset utilization efficiency and generate more sales from its fixed assets.
Further analysis and investigation into the specific factors affecting the fixed asset turnover ratio for MDU Resources Group Inc in 2023 would be necessary to determine the root causes of the decline and to develop appropriate strategies for improving asset efficiency and overall financial performance.
Peer comparison
Dec 31, 2023