National Fuel Gas Company (NFG)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	2,173,770	2,186,050	1,742,660	1,546,290	1,693,330
Property, plant and equipment	US$ in thousands	7,299,860	6,566,480	6,384,280	5,998,070	5,509,510
Fixed asset turnover		0.30	0.33	0.27	0.26	0.31

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,173,770K ÷ $7,299,860K
= 0.30

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. A higher ratio indicates that the company is generating more sales per dollar of fixed assets.

Looking at the trend in National Fuel Gas Co.'s fixed asset turnover over the past five years, the ratio has fluctuated. In 2023, the ratio decreased to 0.30 from 0.33 in 2022, indicating a slight decline in the efficiency of using fixed assets to generate revenue. This may be due to an increase in fixed assets without a proportional increase in revenue.

Comparing the 2023 ratio to that of 2021 and 2020, there seems to be an improvement as the ratio is higher. However, it's important to note that the ratio was also higher in 2019. This suggests that National Fuel Gas Co. has experienced variability in the utilization of its fixed assets over the years.

Overall, National Fuel Gas Co. should continue to monitor and manage its fixed assets effectively to ensure optimal utilization and maximize revenue generation.