Essential Utilities Inc (WTRG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,053,820 | 2,288,030 | 1,878,140 | 1,462,700 | 889,692 |
| Property, plant and equipment | US$ in thousands | 12,097,100 | 11,130,900 | 10,251,900 | 9,512,880 | 6,345,790 |
| Fixed asset turnover | 0.17 | 0.21 | 0.18 | 0.15 | 0.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,053,820K ÷ $12,097,100K
= 0.17
Essential Utilities Inc's fixed asset turnover ratio has fluctuated over the past five years, ranging from 0.14 to 0.21. The trend indicates some variability in the efficiency with which the company generates revenue from its fixed assets.
A fixed asset turnover ratio of 0.17 in 2023 suggests that, on average, Essential Utilities Inc generated $0.17 in revenue for every dollar invested in fixed assets during the year. This implies a slight decrease from the previous year's ratio of 0.21 and a noticeable improvement from 0.15 in 2020.
The decline in 2023 may indicate a potential decrease in operational efficiency or a change in the utilization of fixed assets compared to the prior year. However, the ratio remains within a relatively stable range, indicating that Essential Utilities Inc continues to effectively utilize its fixed assets to generate revenue.
Further analysis and comparison with industry benchmarks or competitors' ratios could provide additional insights into Essential Utilities Inc's performance in efficiently managing its fixed assets.
Peer comparison
Dec 31, 2023