National Fuel Gas Company (NFG)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	1,944,810	2,173,770	2,186,050	1,742,660	1,546,290
Property, plant and equipment	US$ in thousands	7,339,200	7,299,860	6,566,480	6,384,280	5,998,070
Fixed asset turnover		0.26	0.30	0.33	0.27	0.26

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,944,810K ÷ $7,339,200K
= 0.26

The fixed asset turnover ratio for National Fuel Gas Company has fluctuated over the past five years, indicating varying efficiency in generating revenue from its fixed assets. In 2022, the ratio was at its highest at 0.33, suggesting that the company generated $0.33 in sales for every $1 invested in fixed assets. This could be a positive sign of increased asset utilization or improved operations efficiency.

However, the ratio decreased in 2023 and continued to decline in 2024 to 0.26, which may raise concerns about the company's ability to efficiently use its fixed assets to generate revenue. A lower ratio could indicate underutilization of assets, asset impairment, or reduced operational efficiency, impacting the company's overall profitability.

Further analysis of the company's operational performance and investment in fixed assets is necessary to understand the factors driving the changes in the fixed asset turnover ratio and to assess the company's long-term financial sustainability and asset management strategies.