Middlesex Water Company (MSEX)
Fixed asset turnover
Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 153,788 | 161,157 | 135,679 | 133,956 | 127,194 |
Property, plant and equipment | US$ in thousands | — | 935,584 | 881,299 | 813,014 | 722,044 |
Fixed asset turnover | — | 0.17 | 0.15 | 0.16 | 0.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $153,788K ÷ $—K
= —
The fixed asset turnover ratio for Middlesex Water Co. has been relatively stable over the past five years, ranging between 0.16 to 0.19. This ratio indicates how efficiently the company is generating revenue from its investment in fixed assets. A lower ratio suggests that the company is not utilizing its fixed assets effectively to generate sales, which could be a concern for investors and management.
In this case, the decreasing trend in the fixed asset turnover ratio over the years may indicate a decrease in efficiency in utilizing fixed assets to generate sales. It is important for the company to investigate the reasons behind this trend and take necessary actions to improve the efficiency of its asset utilization. Additionally, a thorough review of the company's asset management practices and capital investment decisions may be warranted to optimize the utilization of fixed assets and improve overall financial performance.
Peer comparison
Dec 31, 2023