OGE Energy Corporation (OGE)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 2,985,300 2,674,300 3,375,700 3,653,700 2,122,300
Property, plant and equipment US$ in thousands 12,086,600 11,301,000 10,546,800 9,832,900 9,374,600
Fixed asset turnover 0.25 0.24 0.32 0.37 0.23

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,985,300K ÷ $12,086,600K
= 0.25

The fixed asset turnover ratio for OGE Energy Corporation indicates how efficiently the company is generating revenue from its fixed assets. The trend analysis of the fixed asset turnover ratio shows fluctuations over the past five years: it increased from 0.23 in December 2020 to 0.37 in December 2021, suggesting improved utilization of fixed assets for revenue generation. However, the ratio dropped to 0.32 in December 2022, indicating a slight decrease in efficiency.

The ratio then decreased further to 0.24 in December 2023 and slightly improved to 0.25 in December 2024. The declining trend in later years may indicate potential issues with asset management efficiency or a decrease in revenue generated from fixed assets.

Overall, a fixed asset turnover ratio below 1 signifies that OGE Energy Corporation may not be efficiently utilizing its fixed assets to generate revenue, and management should focus on improving asset utilization and productivity to enhance overall operational efficiency.