Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Kinder Morgan Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Net fixed asset turnover
- The net fixed asset turnover ratio demonstrated relative stability over the observed period. Beginning at 0.36 in 2015, it slightly declined to 0.34 during 2016 and 2017, then experienced a modest increase to 0.37 in 2018, before settling at 0.36 in 2019. This pattern suggests a consistent efficiency in generating sales from fixed assets, with minor fluctuations but no significant upward or downward trend.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This metric mirrored the net fixed asset turnover ratio precisely throughout the five years, indicating that the inclusion of operating lease assets and right-of-use assets had no material effect on the overall asset turnover calculation during the period.
- Total asset turnover
- Total asset turnover maintained a low but stable profile, with values hovering close to 0.17 on average. The ratio was 0.17 in 2015, dropped slightly to 0.16 in 2016, then rebounded to 0.17 in 2017, followed by incremental improvement to 0.18 during 2018 and remaining constant at 0.18 in 2019. This suggests a slight enhancement in the efficiency of the company’s use of all its assets to generate revenue over time.
- Equity turnover
- Equity turnover showed moderate variance, starting at 0.41 in 2015, decreasing to 0.38 in 2016, recovering to 0.41 in 2017, rising slightly to 0.42 in 2018, and then decreasing again to 0.39 in 2019. Despite these fluctuations, the ratio remained within a narrow range, suggesting relatively consistent utilization of shareholder equity to generate sales, but without a clear trend upwards or downwards.
Net Fixed Asset Turnover
Kinder Morgan Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Property, plant and equipment, net | 36,419) | 37,897) | 40,155) | 38,705) | 40,547) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.36 | 0.37 | 0.34 | 0.34 | 0.36 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 13,209 ÷ 36,419 = 0.36
2 Click competitor name to see calculations.
- Revenues
- Revenues show a fluctuating trend over the five-year period. Starting at 14,403 million US dollars in 2015, revenues decreased in 2016 to 13,058 million. They experienced a moderate recovery in 2017 and 2018, reaching 13,705 million and 14,144 million respectively, but declined again in 2019 to 13,209 million. Overall, the revenue levels remain relatively stable but with noticeable volatility.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment demonstrates a consistent downward trend from 40,547 million US dollars in 2015 to 36,419 million in 2019. This indicates a gradual reduction in the company's asset base, potentially due to depreciation, divestitures, or limited new capital expenditures during this period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio remained relatively stable over the years. It started at 0.36 in 2015, declined slightly to 0.34 in 2016 and 2017, improved to 0.37 in 2018, and then reverted to 0.36 in 2019. This stability suggests that the company maintained a consistent ability to generate revenue from its fixed assets despite variations in both revenues and asset base.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Kinder Morgan Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Property, plant and equipment, net | 36,419) | 37,897) | 40,155) | 38,705) | 40,547) | |
| Operating lease ROU assets (located in Deferred charges and other assets) | 329) | —) | —) | —) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 36,748) | 37,897) | 40,155) | 38,705) | 40,547) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.36 | 0.37 | 0.34 | 0.34 | 0.36 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 13,209 ÷ 36,748 = 0.36
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues exhibited variability over the five-year period, starting at $14,403 million in 2015, followed by a decline to $13,058 million in 2016. A recovery phase is noticeable in 2017 and 2018 with revenues increasing to $13,705 million and $14,144 million respectively, before declining again to $13,209 million in 2019. Overall, the revenue trend reflects fluctuations with no clear sustained growth pattern.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment including operating lease and right-of-use assets declined steadily from $40,547 million in 2015 to $36,748 million in 2019. This consistent reduction suggests either asset disposals, depreciation, or an absence of significant capital expenditure investments over the period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio remained relatively stable, fluctuating slightly between 0.34 and 0.37. This ratio was lowest at 0.34 in 2016 and 2017, peaked at 0.37 in 2018, and then decreased marginally to 0.36 in 2019. The consistency of this ratio indicates stable efficiency in generating revenue from net fixed assets despite the fluctuating asset base and revenue levels.
- Overall Insights
- The financial data reflects a period of moderate revenue instability coupled with a declining asset base. Despite shrinking property and equipment values, the company maintained a relatively consistent efficiency in utilizing these assets to generate revenues. The slight improvements in asset turnover ratio in 2018 may suggest temporary operational enhancements or improved asset management during that year.
Total Asset Turnover
Kinder Morgan Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Total assets | 74,157) | 78,866) | 79,055) | 80,305) | 84,104) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.18 | 0.18 | 0.17 | 0.16 | 0.17 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Total asset turnover = Revenues ÷ Total assets
= 13,209 ÷ 74,157 = 0.18
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues experienced a decline from 14403 million US dollars in 2015 to 13058 million US dollars in 2016. Subsequently, there was a recovery with revenues increasing to 13705 million in 2017 and further to 14144 million in 2018. However, in 2019, revenues decreased again to 13209 million US dollars. Overall, revenues demonstrated volatility with no clear upward or downward trend over the five-year period.
- Total Assets Trends
- Total assets showed a consistent downward trend throughout the period, decreasing from 84104 million US dollars in 2015 to 74157 million in 2019. This represents a steady decline in asset base over the five years.
- Total Asset Turnover Trends
- The total asset turnover ratio remained relatively stable with a slight improvement over time. It started at 0.17 in 2015, dipped slightly to 0.16 in 2016, and then gradually increased to 0.18 by 2018 and remained at that level in 2019. This suggests a modest increase in efficiency in using assets to generate revenues despite the overall decline in total assets.
- Summary of Financial Efficiency and Performance
- The combination of declining total assets and relatively stable revenue levels contributed to a slight improvement in total asset turnover. This may indicate increased operational efficiency or better utilization of the assets. However, the fluctuating revenue figures indicate some instability in sales or market conditions during the period under review.
Equity Turnover
Kinder Morgan Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 13,209) | 14,144) | 13,705) | 13,058) | 14,403) | |
| Total Kinder Morgan, Inc.’s stockholders’ equity | 33,742) | 33,678) | 33,636) | 34,431) | 35,119) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.39 | 0.42 | 0.41 | 0.38 | 0.41 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 2019 Calculation
Equity turnover = Revenues ÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= 13,209 ÷ 33,742 = 0.39
2 Click competitor name to see calculations.
- Revenues
- The revenues experienced a decline from 14,403 million US dollars in 2015 to 13,058 million US dollars in 2016, indicating a reduction of approximately 9.3%. After this decline, revenues showed a moderate recovery in 2017, increasing to 13,705 million US dollars and further rising to 14,144 million US dollars in 2018. However, in 2019, revenues decreased again to 13,209 million US dollars. Overall, the revenue trend over the five-year period exhibits fluctuations with a peak in 2015 and 2018, and dips in 2016 and 2019.
- Total Stockholders’ Equity
- The total stockholders’ equity demonstrated a gradual decline from 35,119 million US dollars in 2015 to 33,636 million US dollars in 2017, reflecting a steady reduction over these years. From 2017 onwards, the equity figures stabilized slightly, with marginal fluctuations, reaching 33,742 million US dollars in 2019. This indicates a relative plateau in equity levels after an initial decreasing trend during the first three years of the period analyzed.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency of using equity to generate revenue, declined from 0.41 in 2015 to 0.38 in 2016. It then improved to 0.41 in 2017 and further increased to 0.42 in 2018, suggesting enhanced efficiency during these years. In 2019, the ratio decreased to 0.39, indicating a slight decline in the utilization of equity to generate revenues. Overall, the ratio fluctuated around the 0.39 to 0.42 range, signaling moderate efficiency with some variability.
- Summary
- The reviewed financial data reveal that the entity experienced varying revenue levels with no clear growth trend, subjected to declines and recoveries within the period. Total stockholders' equity showed a mild nominal decline and later stabilization, suggesting that the company's financial base remained relatively steady in later years. The equity turnover ratio exhibited a pattern of moderate fluctuation, indicating fluctuating efficiency in equity use to generate revenues. No significant, consistent upward or downward trends in overall financial performance are apparent from these metrics within the analyzed period.