Xcel Energy Inc (XEL)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 14,206,000 | 15,310,000 | 13,431,000 | 11,526,000 | 11,529,000 |
| Property, plant and equipment | US$ in thousands | 51,642,000 | 48,253,000 | 45,457,000 | 42,950,000 | 39,483,000 |
| Fixed asset turnover | 0.28 | 0.32 | 0.30 | 0.27 | 0.29 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $14,206,000K ÷ $51,642,000K
= 0.28
The fixed asset turnover ratio for Xcel Energy, Inc. has shown some fluctuation over the past five years. In 2023, the ratio decreased to 0.28 from 0.32 in 2022, indicating a decline in the efficiency of generating revenue from its fixed assets. However, compared to 2020 and 2019, the ratio remained relatively stable.
A fixed asset turnover ratio of less than 1 suggests that the company is generating less revenue relative to its fixed assets, which may indicate underutilization or inefficiency in managing its assets. The declining trend observed in 2023 could be a cause for concern, as it may signal a need for the company to reassess its asset utilization strategies.
Further analysis would be required to determine the specific factors contributing to the fluctuation in the fixed asset turnover ratio and to evaluate the overall effectiveness of Xcel Energy, Inc.'s asset management practices.
Peer comparison
Dec 31, 2023