Essential Utilities Inc (WTRG)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,086,110 | 2,053,820 | 2,288,030 | 1,878,140 | 1,462,700 |
| Property, plant and equipment | US$ in thousands | — | — | 11,130,900 | 10,251,900 | 9,512,880 |
| Fixed asset turnover | — | — | 0.21 | 0.18 | 0.15 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,086,110K ÷ $—K
= —
Fixed asset turnover is a measure of a company's ability to generate revenue from its fixed assets. In the case of Essential Utilities Inc, the fixed asset turnover ratio has shown an improving trend over the past few years.
As of December 31, 2020, the fixed asset turnover stood at 0.15, indicating that the company generated $0.15 in sales for every $1 invested in fixed assets. By December 31, 2021, the ratio increased to 0.18, showing that the company became more efficient in utilizing its fixed assets to generate revenue.
The trend continued to improve as of December 31, 2022, with a fixed asset turnover of 0.21. This suggests that Essential Utilities Inc is making more effective use of its fixed assets to drive sales growth. However, it is worth noting that the data for December 31, 2023, and December 31, 2024 is not available (indicated by "\u2014"), making it difficult to assess the latest performance.
Overall, the increasing trend in fixed asset turnover indicates that Essential Utilities Inc is becoming more efficient in using its fixed assets to generate revenue, which is a positive sign for the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024