Sempra Energy (SRE)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 13,185,000 | 16,720,000 | 14,439,000 | 12,857,000 | 11,370,000 |
| Property, plant and equipment | US$ in thousands | 79,082,000 | 71,156,000 | 47,782,000 | 43,894,000 | 40,003,000 |
| Fixed asset turnover | 0.17 | 0.23 | 0.30 | 0.29 | 0.28 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $13,185,000K ÷ $79,082,000K
= 0.17
The fixed asset turnover ratio for Sempra Energy has shown a gradual increase from 0.28 in December 31, 2020, to 0.30 in December 31, 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested over the years, which is a positive sign of efficiency in asset utilization. However, there was a slight decline to 0.23 in December 31, 2023, followed by a more significant decrease to 0.17 in December 31, 2024.
The decline in fixed asset turnover in the later years may signal potential issues with asset management or declining revenue generation relative to the fixed assets deployed. This trend could warrant further investigation into the company's operational efficiency and asset utilization strategies to ensure optimal performance and sustainable growth in the future.
Peer comparison
Dec 31, 2024