Essential Utilities Inc (WTRG)
Total 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 |
| Total assets | US$ in thousands | 16,841,500 | 15,719,100 | 14,658,300 | 13,705,300 | 9,361,980 |
| Total asset turnover | 0.12 | 0.15 | 0.13 | 0.11 | 0.10 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,053,820K ÷ $16,841,500K
= 0.12
Total asset turnover is a key financial ratio that measures a company's ability to generate revenue from its total assets. In the case of Essential Utilities Inc, the total asset turnover has shown some fluctuations over the past five years.
In 2023, the total asset turnover stands at 0.12, indicating that the company generated $0.12 of revenue for every $1 of total assets. Compared to the previous year, the ratio decreased from 0.15 in 2022 to 0.12 in 2023, suggesting a decrease in the company's efficiency in utilizing its assets to generate revenue.
Looking at the trend over the past five years, Essential Utilities Inc has generally maintained a total asset turnover in the range of 0.10 to 0.15. This indicates that the company has been moderately successful in generating revenue relative to its asset base, with some variability in efficiency from year to year.
It is important for the company to analyze the factors contributing to the fluctuations in total asset turnover to optimize its asset utilization and improve overall financial performance. Further investigation into operational efficiency and asset management strategies may be necessary to enhance the company's profitability and sustainability in the long term.
Peer comparison
Dec 31, 2023