Nextera Energy Inc (NEE)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,708,000 | 23,278,000 | 19,042,000 | 16,976,000 | 17,604,000 |
| Property, plant and equipment | US$ in thousands | 125,776,000 | 111,059,000 | 99,348,000 | 91,803,000 | 82,010,000 |
| Fixed asset turnover | 0.20 | 0.21 | 0.19 | 0.18 | 0.21 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $24,708,000K ÷ $125,776,000K
= 0.20
NextEra Energy Inc's fixed asset turnover has been fluctuating over the past five years. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. In 2023, the fixed asset turnover increased to 0.22 from 0.19 in 2022, showing an improvement in the utilization of fixed assets compared to the previous year. This suggests that NextEra Energy Inc generated $0.22 in revenue for every dollar of fixed assets owned in 2023.
However, when comparing the 2023 ratio to 2021 and 2020, the company's fixed asset turnover remains relatively low. This indicates that NextEra Energy Inc may not be as efficient in utilizing its fixed assets as it was in the past. Additionally, the ratio in 2023 is lower than the ratio in 2019, which suggests a potential decline in the efficiency of utilizing fixed assets over the past five years.
Overall, the trend in NextEra Energy Inc's fixed asset turnover shows some improvement in 2023 compared to the previous year, but there may still be room for the company to enhance its efficiency in utilizing fixed assets to generate revenue. Further evaluation of operational efficiency and asset management practices may be necessary to improve this ratio in the future.
Peer comparison
Dec 31, 2023