Essential Utilities Inc (WTRG)

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	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	889,692	869,397	851,908	844,876
Property, plant and equipment	US$ in thousands	12,097,100	11,846,600	11,590,800	11,294,600	11,130,900	10,875,700	10,592,400	10,394,700	10,251,900	9,956,770	9,707,360	9,569,340	9,512,880	9,260,460	9,050,760	8,889,840	6,345,790	6,196,950	6,114,850	6,020,340
Fixed asset turnover		0.17	0.19	0.20	0.20	0.21	0.19	0.19	0.19	0.18	0.18	0.19	0.19	0.15	0.13	0.12	0.11	0.14	0.14	0.14	0.14

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,053,824K ÷ $12,097,100K
= 0.17

Essential Utilities Inc's fixed asset turnover has been fairly consistent over the past eight quarters, ranging from 0.17 to 0.21. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

In this case, Essential Utilities Inc's fixed asset turnover has been relatively stable, hovering around the 0.19 to 0.21 range. This suggests that the company is effectively using its fixed assets to generate revenue. However, it is important to note that the ratio has not shown significant improvement or deterioration over the periods analyzed.

Overall, while the fixed asset turnover of Essential Utilities Inc appears to be consistent, further analysis of the company's operational efficiency and investment in fixed assets may provide additional insights into its overall performance and future growth prospects.