SkyWest Inc (SKYW)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	3,599,954	3,371,490	3,186,371	3,005,936	2,890,358	2,814,694	2,837,558	2,914,438	2,963,235	3,042,161	3,003,665	2,857,719	2,652,287	2,485,562	2,186,191	1,875,348	2,067,711	2,238,559	2,531,539	2,912,994
Property, plant and equipment	US$ in thousands	5,587,410	5,417,270	5,434,750	5,490,820	5,482,970	5,498,420	5,491,140	5,561,460	5,548,480	5,600,000	5,559,980	5,528,820	5,498,600	5,285,460	5,284,330	5,313,660	5,362,050	5,207,750	5,300,000	5,393,740
Fixed asset turnover		0.64	0.62	0.59	0.55	0.53	0.51	0.52	0.52	0.53	0.54	0.54	0.52	0.48	0.47	0.41	0.35	0.39	0.43	0.48	0.54

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,599,954K ÷ $5,587,410K
= 0.64

The fixed asset turnover ratio of SkyWest Inc has been fluctuating over the past few years, ranging from 0.35 to 0.64. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue.

From March 2021 to December 2023, the ratio saw a decreasing trend, indicating that SkyWest Inc was generating less revenue relative to its investment in fixed assets during this period. This could suggest potential inefficiencies or underutilization of fixed assets.

However, starting from March 2024, the fixed asset turnover ratio began to improve, reaching 0.64 by December 2024. This indicates that the company is now generating more revenue per dollar of fixed assets invested, reflecting a better utilization of its fixed assets.

Overall, it is essential for SkyWest Inc to continue monitoring and improving its fixed asset turnover ratio to ensure optimal utilization of its fixed assets and maximize revenue generation.