Spire Inc (SR)

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	2,416,200	2,524,200	2,541,800	2,588,700	2,365,900	2,078,700	2,060,900	1,943,100	2,168,800	2,128,900	2,093,600	2,087,400	1,696,600	1,749,900	1,748,800	1,775,400	1,890,600	1,952,400	1,966,000	1,995,300
Property, plant and equipment	US$ in thousands	687,100	628,500	582,700	520,400	508,900	491,400	476,900	475,800	474,200	471,100	463,600	457,000	448,700	432,300	420,100	547,400	518,700	477,800	416,600	329,100
Fixed asset turnover		3.52	4.02	4.36	4.97	4.65	4.23	4.32	4.08	4.57	4.52	4.52	4.57	3.78	4.05	4.16	3.24	3.64	4.09	4.72	6.06

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,416,200K ÷ $687,100K
= 3.52

The fixed asset turnover ratio for Spire Inc. has shown a fluctuating trend over the past eight quarters. The ratio ranged from 0.36 to 0.45 during this period. The ratio peaked at 0.45 in Q2 2023, indicating that the company generated $0.45 in revenue for every dollar invested in fixed assets during that quarter. However, it decreased in subsequent quarters and reached a low of 0.36 in Q2 2022.

A fixed asset turnover ratio below 1 suggests that the company may not be efficiently utilizing its fixed assets to generate revenue. In this case, the fixed asset turnover ratios for Spire Inc. are consistently below 1, which could be a concern for investors and creditors.

Overall, the declining trend in fixed asset turnover ratios over the past quarters may indicate potential inefficiencies in the company's operations related to the utilization of its fixed assets. Monitoring and improving this ratio could be crucial for Spire Inc. to enhance its operational efficiency and profitability in the long run.