Talen Energy(Tln) Financials: Fixed Asset Turnover Compared To Industry Average, Plus Other Key Ratios

Report Profitability Growth Liquidity Solvency Valuation

fixed asset turnover inventory turnover payables turnover receivables turnover total asset turnover working capital turnover

Growth Trend (Last 5 Years)

Growth - fixed asset turnover

This chart shows the historical trend of fixed asset turnover for TLN compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', TLN's fixed asset turnover was 0.38, illustrating how efficiently fixed assets are generating revenue. Industry average for Electric Utilities: Central in '2021' stood at 0.34.
• In '2022', TLN's fixed asset turnover was 0.52, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2022' stood at 0.51. Industry average increased by 0.17 compared to previous year.
• In '2024', TLN's fixed asset turnover was 0.59, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Electric Utilities: Central in '2024' stood at 0.45. Industry average declined by 0.06 from previous year.
Overall, TLN's fixed asset turnover has been volatile but showed an upward trend over the past 3 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.