Quanta Services Inc (PWR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 20,695,300 | 16,964,300 | 12,920,400 | 11,160,700 | 12,051,100 |
| Property, plant and equipment | US$ in thousands | 2,301,170 | 2,027,230 | 1,917,280 | 2,930,420 | 2,635,810 |
| Fixed asset turnover | 8.99 | 8.37 | 6.74 | 3.81 | 4.57 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,695,300K ÷ $2,301,170K
= 8.99
The fixed asset turnover ratio for Quanta Services, Inc. has shown a fluctuating trend over the past five years. The ratio measures the efficiency with which the company is utilizing its fixed assets to generate sales revenue.
In 2023, the fixed asset turnover ratio reached 8.94, indicating that for every dollar invested in fixed assets, the company generated $8.94 in sales. This represents an improvement from the previous year, where the ratio was 8.41.
The increase in the fixed asset turnover ratio suggests that Quanta Services, Inc. has been able to more effectively utilize its fixed assets to generate revenue in 2023 compared to the prior year. This may be attributed to better asset management practices, improved operational efficiency, or increased demand for the company's services.
Overall, the trend of increasing fixed asset turnover ratios from 2020 to 2023 indicates that Quanta Services, Inc. has been able to optimize its fixed asset utilization over the years, a positive sign of operational efficiency and effective resource management.
Peer comparison
Dec 31, 2023