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
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
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.