Spire Inc (SR)

Fixed asset turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	2,480,600	2,078,700	2,128,900	1,749,900	1,848,000
Property, plant and equipment	US$ in thousands	628,500	491,400	471,100	432,300	477,800
Fixed asset turnover		3.95	4.23	4.52	4.05	3.87

September 30, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,480,600K ÷ $628,500K
= 3.95

The fixed asset turnover ratio measures a company's efficiency in generating sales from its investment in fixed assets, such as property, plant, and equipment.

Spire Inc.'s fixed asset turnover has shown fluctuations over the past five years, ranging from 0.36 to 0.42. This indicates that the company's ability to generate sales from its fixed assets has varied but has generally remained within a relatively narrow range.

A higher ratio would suggest more efficient utilization of fixed assets to generate sales, whereas a lower ratio could indicate underutilization or overinvestment in fixed assets relative to sales.

Overall, while the trend in Spire Inc.'s fixed asset turnover is not consistently improving, it is important to consider industry benchmarks and other financial metrics to gain a comprehensive understanding of the company's asset utilization efficiency.