EchoStar Corporation (SATS)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,266,000 | 2,033,290 | 1,986,150 | 1,801,530 | 1,803,760 |
| Property, plant and equipment | US$ in thousands | 9,561,830 | 7,904,960 | 382,058 | 449,390 | 2,528,740 |
| Fixed asset turnover | 1.60 | 0.26 | 5.20 | 4.01 | 0.71 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,266,000K ÷ $9,561,830K
= 1.60
Based on the fixed asset turnover ratios of EchoStar Corporation over the past five years, the company's efficiency in generating revenues from its fixed assets has varied significantly. In 2023, EchoStar achieved a fixed asset turnover of 1.60, signaling a substantial improvement compared to the prior year. This suggests that EchoStar generated $1.60 in revenue for every dollar invested in fixed assets during 2023.
The drastic increase from 2022's ratio of 0.26 indicates a significant enhancement in the company's utilization of its fixed assets to drive sales. Moreover, the ratios from 2021 and 2020 also reflect commendable performance, standing at 5.20 and 4.01 respectively, highlighting EchoStar's ability to efficiently leverage its fixed assets to generate revenue during those years.
However, in 2019, EchoStar's fixed asset turnover was notably lower at 0.71, suggesting a lower efficiency in utilizing fixed assets to generate sales compared to the subsequent years. This downward trend in 2020 may have been a concern for stakeholders at that time.
Overall, the fluctuation in EchoStar's fixed asset turnover ratios over the five-year period indicates varying levels of effectiveness in utilizing fixed assets to drive revenue generation. The company's recent improvement in this ratio could be seen as a positive sign for its operational efficiency and potentially its overall financial performance.
Peer comparison
Dec 31, 2023