EchoStar Corporation (SATS)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,482,553 | 1,828,396 | 1,915,143 | 1,933,970 | 2,033,291 | 1,975,606 | 1,957,556 | 2,000,467 | 1,986,148 | 2,024,663 | 1,986,071 | 1,910,995 | 1,819,466 | 1,829,199 | 1,830,681 | 1,927,588 | 2,025,666 | 2,057,321 | 2,131,820 | 2,120,653 |
| Property, plant and equipment | US$ in thousands | 9,561,830 | 2,144,710 | 2,168,380 | 2,175,860 | 7,904,960 | 2,251,260 | 2,312,530 | 2,376,140 | 382,058 | 2,374,080 | 2,431,650 | 2,420,920 | 449,390 | 2,372,590 | 2,399,710 | 2,428,540 | 2,528,740 | 2,444,160 | 3,329,790 | 3,363,400 |
| Fixed asset turnover | 0.57 | 0.85 | 0.88 | 0.89 | 0.26 | 0.88 | 0.85 | 0.84 | 5.20 | 0.85 | 0.82 | 0.79 | 4.05 | 0.77 | 0.76 | 0.79 | 0.80 | 0.84 | 0.64 | 0.63 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,482,553K ÷ $9,561,830K
= 0.57
Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate revenue.
Analyzing EchoStar Corporation's fixed asset turnover over the past few quarters reveals fluctuations in the ratio. For instance, in the most recent quarter ending December 31, 2023, the fixed asset turnover was 0.57, indicating that the company generated $0.57 in sales for each dollar invested in fixed assets. This ratio decreased from the previous quarter, suggesting a potential decline in efficiency in utilizing fixed assets to generate revenue.
Looking at historical trends, the fixed asset turnover has shown variability over time. In some quarters, such as December 31, 2020, and December 31, 2021, the fixed asset turnover spiked significantly to 4.05 and 5.20, respectively. This indicates that during those periods, EchoStar Corporation was able to generate a substantial amount of sales relative to its investment in fixed assets.
Overall, a thorough analysis of EchoStar Corporation's fixed asset turnover reveals fluctuating efficiency in utilizing fixed assets to generate revenue. It is important for the company to closely monitor this ratio and take appropriate actions to improve the efficiency of its fixed asset utilization in order to enhance profitability and shareholder value.
Peer comparison
Dec 31, 2023