SJW Corporation (SJW)

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	670,363	670,399	641,537	633,692	620,698	589,061	580,003	583,203	573,686	569,649	568,589	563,557	564,526	554,664	502,798	458,554	420,482	393,362	404,218	400,339
Property, plant and equipment	US$ in thousands	4,152,250	4,070,080	3,980,260	3,904,250	3,854,080	3,799,570	3,736,940	3,678,000	3,633,620	3,557,940	3,488,730	3,423,920	3,380,050	43,592	43,826	44,055	44,102	43,249	43,548	43,710
Fixed asset turnover		0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.16	0.17	12.72	11.47	10.41	9.53	9.10	9.28	9.16

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $670,363K ÷ $4,152,250K
= 0.16

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.

Analyzing SJW Group's fixed asset turnover over the last 8 quarters shows that there has been relatively stable performance with values ranging from 0.21 to 0.25. The consistent range suggests that SJW Group has been able to generate revenue from its fixed assets at a fairly consistent level over the period.

While the ratios have not shown significant fluctuations, it is important to note that the values are relatively low, indicating that SJW Group may not be fully optimizing its fixed assets to generate revenue. This could be due to factors such as underutilization of assets or inefficiencies in production processes.

Overall, the trend in SJW Group's fixed asset turnover suggests a stable but relatively low level of efficiency in utilizing fixed assets to generate revenue. Further analysis and potential improvements may be warranted to enhance the efficiency and productivity of the company's fixed asset base.