Williams Companies Inc (WMB)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,503,000 | 10,907,000 | 10,965,000 | 10,627,000 | 7,719,000 |
| Property, plant and equipment | US$ in thousands | 38,692,000 | 34,311,000 | 30,889,000 | 29,258,000 | 28,929,000 |
| Fixed asset turnover | 0.27 | 0.32 | 0.35 | 0.36 | 0.27 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,503,000K ÷ $38,692,000K
= 0.27
Williams Companies Inc's fixed asset turnover has shown some fluctuations over the past five years. The ratio increased from 0.27 in December 31, 2020 to 0.36 in December 31, 2021, indicating that the company generated more revenue for each dollar invested in fixed assets during that period.
However, the ratio slightly decreased to 0.35 in December 31, 2022, and further to 0.32 in December 31, 2023, which might suggest a slight decrease in efficiency in utilizing fixed assets to generate sales.
By December 31, 2024, the fixed asset turnover ratio decreased back to 0.27, the same level as in December 31, 2020, which could be a cause for concern as it represents a decrease in revenue generated per dollar of investment in fixed assets.
Overall, the company's fixed asset turnover ratio has shown some variability, indicating fluctuations in the efficiency of utilizing fixed assets to generate sales over the past five years. Further analysis and comparison with industry benchmarks may help provide more insights into the company's performance in this aspect.
Peer comparison
Dec 31, 2024