Spire Inc (SR)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	2,593,000	2,480,600	2,078,700	2,128,900	1,749,900
Property, plant and equipment	US$ in thousands	955,300	628,500	491,400	471,100	432,300
Fixed asset turnover		2.71	3.95	4.23	4.52	4.05

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,593,000K ÷ $955,300K
= 2.71

Fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is effectively using its fixed assets to generate sales. The trend for Spire Inc's fixed asset turnover has been decreasing over the past five years, from 4.05 in 2020 to 2.71 in 2024.

The significant decrease in fixed asset turnover suggests that Spire Inc is less efficient in generating sales revenue from its fixed assets in recent years. This could be due to various factors such as an increase in fixed asset investments without a proportional increase in revenue, or a decline in sales relative to the value of fixed assets held.

Further analysis would be needed to determine the specific reasons behind the declining trend in fixed asset turnover for Spire Inc and evaluate its impact on the overall financial performance and operational efficiency of the company.