NiSource Inc (NI)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,817,400 | 5,341,000 | 4,383,000 | 3,804,400 | 6,743,700 |
| Property, plant and equipment | US$ in thousands | 22,274,900 | 19,842,600 | 17,881,800 | 16,619,500 | 16,912,200 |
| Fixed asset turnover | 0.22 | 0.27 | 0.25 | 0.23 | 0.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,817,400K ÷ $22,274,900K
= 0.22
NiSource Inc's fixed asset turnover has been fluctuating over the past five years. The ratio stood at 0.31 in 2019, dropped slightly to 0.28 in 2020, increased to 0.27 in 2021, and further decreased to 0.29 in 2022 before declining to 0.25 in 2023.
A fixed asset turnover of 0.25 in 2023 indicates that for every dollar invested in fixed assets, the company generated $0.25 in revenue. This suggests a decrease in efficiency in utilizing fixed assets to generate sales compared to the previous years.
The decreasing trend in fixed asset turnover may signal a potential issue with asset management efficiency within the company. Further investigation into the reasons behind this decline and potential strategies to improve asset utilization efficiency may be warranted to enhance the company's overall financial performance.
Peer comparison
Dec 31, 2023