Northwest Natural Gas Co (NWN)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,197,475	1,217,014	1,192,374	1,149,475	1,037,353	956,190	940,798	894,755	860,400	826,583	818,420	804,474	773,679	760,680	757,713	746,185	746,382	725,810
Property, plant and equipment	US$ in thousands	3,358,050	3,278,630	3,210,760	3,155,980	3,114,400	3,041,180	2,978,680	2,904,760	2,871,370	2,806,360	2,755,930	2,696,380	2,654,770	2,607,250	2,546,600	2,500,220	2,438,900	2,389,390	2,339,630	2,434,340
Fixed asset turnover		0.36	0.37	0.37	0.36	0.33	0.31	0.32	0.31	0.30	0.29	0.30	0.30	0.29	0.29	0.30	0.30	0.31	0.30

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,197,475K ÷ $3,358,050K
= 0.36

Fixed asset turnover is a financial ratio that indicates how efficiently a company is using its fixed assets to generate revenue. In the case of Northwest Natural Holding Co, the trend in fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 0.31 to 0.37.

A fixed asset turnover ratio of less than 1, such as those observed in the given data, typically indicates that the company is not generating a high amount of revenue relative to its investment in fixed assets. In other words, the company is not effectively utilizing its fixed assets to generate sales.

The slight fluctuations in the fixed asset turnover ratio over the quarters may be attributed to factors such as changes in sales volume, asset utilization, or depreciation of fixed assets. Overall, it is essential for Northwest Natural Holding Co to closely monitor and enhance its efficiency in utilizing fixed assets to drive revenue growth and profitability.