PG&E Corp (PCG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,428,000 | 21,680,000 | 20,642,000 | 18,469,000 | 17,129,000 |
| Property, plant and equipment | US$ in thousands | 81,534,000 | 76,208,000 | 69,826,000 | 66,136,000 | 61,635,000 |
| Fixed asset turnover | 0.30 | 0.28 | 0.30 | 0.28 | 0.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $24,428,000K ÷ $81,534,000K
= 0.30
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. It is calculated by dividing revenue by average fixed assets. A higher fixed asset turnover ratio indicates better efficiency in utilizing fixed assets to generate sales.
Analyzing PG&E Corp.'s fixed asset turnover ratio over the past five years, we can observe a consistent trend of around 0.28 to 0.30. This suggests that the company has been relatively steady in generating revenue from its fixed assets during this period.
A fixed asset turnover ratio of 0.30 in 2023 indicates that for every dollar invested in fixed assets, the company generated $0.30 in revenue. This implies that PG&E Corp. may be effectively utilizing its fixed assets to drive sales. However, it is essential to consider industry benchmarks and compare the ratio to peers to get a clearer picture of the company's performance in this aspect.
Overall, the stability of PG&E Corp.'s fixed asset turnover ratio over the years indicates a consistent efficiency in utilizing its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023