Williams Companies Inc (WMB)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 10,907,000 | 11,053,000 | 11,515,000 | 11,522,000 | 10,965,000 | 11,292,000 | 10,746,000 | 10,539,000 | 10,627,000 | 9,462,000 | 8,920,000 | 8,418,000 | 7,719,000 | 7,734,000 | 7,800,000 | 8,060,000 | 8,201,000 | 8,298,000 | 8,602,000 | 8,652,000 |
| Property, plant and equipment | US$ in thousands | 34,311,000 | 32,628,000 | 32,346,000 | 32,095,000 | 30,889,000 | 30,338,000 | 29,660,000 | 29,186,000 | 29,258,000 | 29,314,000 | 29,299,000 | 29,076,000 | 28,929,000 | 29,107,000 | 29,137,000 | 29,141,000 | 29,200,000 | 29,613,000 | 29,131,000 | 29,081,000 |
| Fixed asset turnover | 0.32 | 0.34 | 0.36 | 0.36 | 0.35 | 0.37 | 0.36 | 0.36 | 0.36 | 0.32 | 0.30 | 0.29 | 0.27 | 0.27 | 0.27 | 0.28 | 0.28 | 0.28 | 0.30 | 0.30 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,907,000K ÷ $34,311,000K
= 0.32
The fixed asset turnover ratio for Williams Cos Inc has been relatively stable over the past eight quarters, ranging from 0.32 to 0.37. This ratio measures how efficiently the company is generating revenue from its investment in fixed assets. A higher ratio indicates that the company is better utilizing its fixed assets to generate sales.
The consistency of the fixed asset turnover ratio around the range of 0.32 to 0.37 suggests that Williams Cos Inc has been maintaining a steady level of efficiency in utilizing its fixed assets to generate revenue. This can indicate effective asset management practices and a good balance between asset investment and revenue generation.
While the fixed asset turnover ratio is important for assessing operational efficiency, it should be considered alongside other financial metrics to provide a more comprehensive analysis of the company's overall financial performance and management of its assets.
Peer comparison
Dec 31, 2023