Williams Companies Inc (WMB)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,907,000 | 10,965,000 | 10,627,000 | 7,719,000 | 8,201,000 |
| Property, plant and equipment | US$ in thousands | 34,311,000 | 30,889,000 | 29,258,000 | 28,929,000 | 29,200,000 |
| Fixed asset turnover | 0.32 | 0.35 | 0.36 | 0.27 | 0.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,907,000K ÷ $34,311,000K
= 0.32
The fixed asset turnover ratio measures how well a company generates revenue from its fixed assets. A higher ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.
For Williams Cos Inc, the fixed asset turnover ratio has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 0.32 from 0.35 in 2022, indicating a decline in the company's ability to generate sales from its fixed assets. This could be a result of lower revenue generation compared to the value of fixed assets in the company.
Despite the decrease in 2023, Williams Cos Inc's fixed asset turnover ratio has generally been stable around the range of 0.27 to 0.36 in the previous years. This suggests that the company has been moderately efficient in using its fixed assets to generate revenue, although there may be room for improvement in optimizing their asset utilization to increase sales.
Overall, the analysis of Williams Cos Inc's fixed asset turnover ratio indicates a need for the company to focus on improving its efficiency in utilizing fixed assets to enhance revenue generation and overall financial performance.
Peer comparison
Dec 31, 2023