MGE Energy Inc (MGEE)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 676,944 | 690,431 | 714,519 | 606,584 | 538,633 |
| Property, plant and equipment | US$ in thousands | 2,287,350 | 2,128,210 | 1,971,100 | 1,878,770 | 1,769,380 |
| Fixed asset turnover | 0.30 | 0.32 | 0.36 | 0.32 | 0.30 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $676,944K ÷ $2,287,350K
= 0.30
Based on the data provided for MGE Energy Inc's fixed asset turnover ratio over the years 2020 to 2024, we observe the following trends:
1. There has been a slight improvement in the fixed asset turnover ratio from 0.30 in December 31, 2020, to 0.32 in December 31, 2021. This indicates that the company generated more revenue per dollar of fixed assets in 2021 compared to 2020.
2. The ratio further increased to 0.36 by December 31, 2022, suggesting that the efficiency of utilizing fixed assets to generate revenue improved significantly that year.
3. However, there was a slight decline in the fixed asset turnover ratio to 0.32 by December 31, 2023. This could indicate a decrease in revenue generation efficiency from fixed assets that year.
4. The ratio reverted back to 0.30 by December 31, 2024, returning to the same level as in 2020. This suggests that the company may have faced challenges in generating revenue from its fixed assets in 2024, similar to the situation in 2020.
In conclusion, the trend in MGE Energy Inc's fixed asset turnover ratio shows some fluctuation over the years, indicating varying levels of efficiency in utilizing fixed assets to generate revenue. It would be important for the company to closely monitor and analyze the factors contributing to these fluctuations to ensure optimal asset utilization in the future.