PPL Corporation (PPL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,312,000 | 7,902,000 | 5,783,000 | 5,474,000 | 5,602,000 |
| Property, plant and equipment | US$ in thousands | 31,418,000 | 30,238,000 | 25,470,000 | 24,500,000 | 36,482,000 |
| Fixed asset turnover | 0.26 | 0.26 | 0.23 | 0.22 | 0.15 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,312,000K ÷ $31,418,000K
= 0.26
The fixed asset turnover ratio for PPL Corp has been relatively stable over the past five years, ranging between 0.20 and 0.26. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio suggests that the company is generating more revenue per dollar invested in fixed assets.
In the case of PPL Corp, the consistent ratio around 0.25 suggests that the company may not be efficiently utilizing its fixed assets to generate revenue compared to some other companies in the industry. This could be due to various factors such as underutilization of assets, aging assets, or ineffective asset management strategies.
It would be beneficial for PPL Corp to assess its fixed asset utilization and consider strategies to improve this ratio in order to enhance operational efficiency and profitability in the long term.
Peer comparison
Dec 31, 2023