Essential Utilities Inc (WTRG)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	2,086,113	1,961,149	1,937,149	1,939,443	2,053,824	2,279,788	2,303,151	2,315,207	2,288,032	2,118,336	2,045,578	1,993,854	1,878,144	1,816,455	1,803,242	1,790,678	1,462,698	1,214,742	1,109,721	944,145
Property, plant and equipment	US$ in thousands	—	—	—	—	—	11,884,400	11,590,800	11,294,600	11,130,900	10,875,700	10,592,400	10,394,700	10,251,900	9,956,770	9,764,520	9,569,340	9,512,880	9,322,480	9,050,760	8,889,840
Fixed asset turnover		—	—	—	—	—	0.19	0.20	0.20	0.21	0.19	0.19	0.19	0.18	0.18	0.18	0.19	0.15	0.13	0.12	0.11

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,086,113K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets.

Looking at the trend of Essential Utilities Inc's fixed asset turnover over the past years, we can observe a gradual increase from 0.11 in March 2020 to 0.21 in December 2022. This indicates that the company is becoming more efficient in utilizing its fixed assets to generate sales.

However, in the following periods from March 2023 to September 2023, the fixed asset turnover remained relatively stable at around 0.19, suggesting a potential stabilization in the efficiency of asset utilization.

It is worth noting that the fixed asset turnover data for the years 2024 is not available, indicating a lack of information for further analysis of the company's asset efficiency in those periods.

Overall, the increasing trend in fixed asset turnover up to 2022 reflects a positive trajectory in Essential Utilities Inc's ability to generate revenue from its fixed assets. Maintaining a stable turnover ratio in the subsequent periods is important for the company to sustain its operational efficiency and profitability.