SkyWest Inc (SKYW)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,890,360	2,963,230	2,652,290	2,033,210	2,971,960
Property, plant and equipment	US$ in thousands	5,482,970	5,548,480	5,498,600	5,362,050	5,394,680
Fixed asset turnover		0.53	0.53	0.48	0.38	0.55

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,890,360K ÷ $5,482,970K
= 0.53

The fixed asset turnover ratio of Skywest Inc. has shown some fluctuations over the past five years. In 2023 and 2022, the ratio remained stable at 0.54, indicating that for every dollar invested in fixed assets, the company generated $0.54 in revenue. This consistency suggests efficient utilization of fixed assets to generate sales.

In 2021, the fixed asset turnover ratio decreased to 0.49, which may indicate a temporary decrease in sales relative to the investment in fixed assets. However, the ratio improved significantly in 2020 to 0.40, which could signal better asset utilization efficiency compared to the previous year.

The highest fixed asset turnover ratio of 0.55 was recorded in 2019, suggesting that the company efficiently utilized its fixed assets to generate revenue during that year. Overall, while there have been fluctuations in the fixed asset turnover ratio of Skywest Inc. over the past five years, the company has generally demonstrated effective management of its fixed assets to generate revenue.