Southwest Gas Holdings Inc (SWX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,433,970 | 4,960,010 | 3,680,450 | 3,298,870 | 3,119,920 |
| Property, plant and equipment | US$ in thousands | -675,632 | -596,518 | -512,343 | -422,741 | 6,337,300 |
| Fixed asset turnover | — | — | — | — | 0.49 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,433,970K ÷ $-675,632K
= —
Southwest Gas Holdings Inc's fixed asset turnover ratio has shown fluctuations over the past five years. The ratio was 0.72 in 2023, a slight increase from 0.71 in 2022. This indicates that the company generated $0.72 in revenue for every dollar invested in fixed assets in 2023.
Comparing to the previous years, the ratio was 0.48 in 2021, 0.53 in 2020, and 0.55 in 2019. The increasing trend from 2021 to 2023 suggests that Southwest Gas Holdings Inc has been utilizing its fixed assets more efficiently in generating revenue. However, the ratio still remains relatively low, indicating potential room for improvement in optimizing the utilization of fixed assets to generate higher revenues.
Further analysis would be beneficial to understand the specific factors influencing the company's fixed asset turnover and to identify opportunities for enhancing operational efficiency and profitability.
Peer comparison
Dec 31, 2023