SJW Corporation (SJW)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 670,363 | 620,698 | 573,686 | 564,526 | 420,482 |
| Property, plant and equipment | US$ in thousands | 4,152,250 | 3,854,080 | 3,633,620 | 3,380,050 | 44,102 |
| Fixed asset turnover | 0.16 | 0.16 | 0.16 | 0.17 | 9.53 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $670,363K ÷ $4,152,250K
= 0.16
Fixed asset turnover is a financial ratio that indicates how efficiently a company is generating revenue from its investment in fixed assets. The fixed asset turnover ratio for SJW Group has been relatively stable over the past five years, with values ranging from 0.19 to 0.24.
A lower fixed asset turnover ratio suggests that the company is not efficiently using its fixed assets to generate sales, while a higher ratio indicates better asset utilization. In the case of SJW Group, the decreasing trend from 0.24 in 2020 to 0.21 in 2023 may indicate a decrease in the efficiency of generating revenue from its fixed assets over the years.
It is important for SJW Group to assess the reasons behind the decline in fixed asset turnover and take steps to improve the efficiency of utilizing its fixed assets to enhance overall operational performance and profitability.
Peer comparison
Dec 31, 2023