AT&T Inc (T)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 122,428,000 | 120,741,000 | 134,038,000 | 143,050,000 | 181,193,000 |
| Property, plant and equipment | US$ in thousands | 128,489,000 | 127,445,000 | 121,649,000 | 121,104,000 | 130,128,000 |
| Fixed asset turnover | 0.95 | 0.95 | 1.10 | 1.18 | 1.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $122,428,000K ÷ $128,489,000K
= 0.95
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue using its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Looking at the trend of AT&T, Inc.'s fixed asset turnover over the past five years, we observe a slight decrease from 1.39 in 2019 to 0.95 in 2023. This downward trend suggests that AT&T, Inc. may not be as efficient in generating sales relative to its investment in fixed assets in recent years.
The stable range of 0.95 to 1.35 from 2020 to 2022 indicates some consistency in the company's performance in utilizing its fixed assets to generate revenue. However, the decrease to 0.95 in 2023 may raise concerns about the company's operational efficiency in utilizing its fixed assets effectively.
In conclusion, AT&T, Inc.'s fixed asset turnover ratio has shown some fluctuations over the past five years, with a downward trend in the most recent year. This trend highlights a potential need for the company to evaluate its fixed asset utilization strategies to improve operational efficiency and maximize revenue generation.
Peer comparison
Dec 31, 2023