Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio remained relatively stable over the analyzed periods, consistently around 0.34 from early 2016 through mid-2018. A slight increase to approximately 0.37 is observed starting in the third quarter of 2018 and continuing through 2019. The ratio shows a slight decline to 0.36 by the first quarter of 2020. This pattern suggests a modest improvement in the efficiency of fixed asset utilization during late 2018 and 2019, followed by a mild decrease at the beginning of 2020.
- Total Asset Turnover
- The total asset turnover ratio exhibits a gradual upward trend from 0.16 in early 2016 to 0.19 by the first quarter of 2019. After peaking, the ratio decreased slightly to 0.18 and remained stable through the first quarter of 2020. This indicates a moderate improvement in the company's ability to generate sales from its total assets over the observed period, with a slight stabilization towards the end.
- Equity Turnover
- Equity turnover shows a modest decline from 0.40 in the first quarter of 2016 to 0.38 by the end of 2016, maintaining this level through most of 2017. A brief increase to 0.41 occurred in late 2017 and was sustained along with a further bump to 0.42 during 2018 and early 2019. However, this ratio slightly declined to 0.39 by the first quarter of 2020. This pattern implies periods of fluctuating efficiency in the use of equity to generate revenue, including a peak in 2018 and early 2019 followed by a slight downturn.
Net Fixed Asset Turnover
Kinder Morgan Inc., net fixed asset turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 3,106) | 3,352) | 3,214) | 3,214) | 3,429) | 3,781) | 3,517) | 3,428) | 3,418) | 3,632) | 3,281) | 3,368) | 3,424) | 3,389) | 3,330) | 3,144) | 3,195) | ||||||
| Property, plant and equipment, net | 36,041) | 36,419) | 37,934) | 37,840) | 37,782) | 37,897) | 37,795) | 39,905) | 40,333) | 40,155) | 39,867) | 39,423) | 39,023) | 38,705) | 38,780) | 41,199) | 41,042) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Net fixed asset turnover1 | 0.36 | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 | 0.37 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.33 | 0.34 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Net fixed asset turnover
= (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
÷ Property, plant and equipment, net
= (3,106 + 3,352 + 3,214 + 3,214)
÷ 36,041 = 0.36
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in revenues, property, plant and equipment (PPE), and net fixed asset turnover over the reported periods.
- Revenues
- Revenues showed moderate fluctuations throughout the periods, beginning at approximately $3,195 million in the first quarter of 2016. Revenues generally increased, reaching a peak near $3,781 million in the last quarter of 2018. However, after this peak, revenues declined thereafter, ending at around $3,106 million in the first quarter of 2020. This suggests volatility with a notable downturn starting in late 2018.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment remained relatively stable with minor fluctuations. The figure was around $41,042 million in the first quarter of 2016 and slightly decreased over time, dropping to approximately $36,041 million by the first quarter of 2020. This overall decline signals a gradual reduction in net fixed assets, possibly due to depreciation, disposals, or limited new capital expenditures during the latter periods.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio remained stable at 0.33-0.34 through most of the periods from 2016 to mid-2018, indicating consistent efficiency in utilizing fixed assets to generate revenues. Starting in late 2018, the ratio improved modestly to about 0.37, maintaining this level through most of 2019, before settling slightly lower at 0.36 by the first quarter of 2020. This improvement corresponds with a period of decreased asset base alongside relatively stable revenues, indicating improved asset utilization efficiency.
In summary, the data indicates a steady asset base reduction with fluctuating revenues that peaked before declining toward the end of the observed period. Meanwhile, asset utilization efficiency improved slightly during the later quarters, suggesting more effective employment of fixed assets despite the decline in their net book value.
Total Asset Turnover
Kinder Morgan Inc., total asset turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 3,106) | 3,352) | 3,214) | 3,214) | 3,429) | 3,781) | 3,517) | 3,428) | 3,418) | 3,632) | 3,281) | 3,368) | 3,424) | 3,389) | 3,330) | 3,144) | 3,195) | ||||||
| Total assets | 73,530) | 74,157) | 76,931) | 76,695) | 76,292) | 78,866) | 79,063) | 78,315) | 79,011) | 79,055) | 80,351) | 80,203) | 79,793) | 80,305) | 81,604) | 84,317) | 84,229) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Total asset turnover1 | 0.18 | 0.18 | 0.18 | 0.18 | 0.19 | 0.18 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.17 | 0.17 | 0.16 | 0.16 | 0.16 | 0.17 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Total asset turnover
= (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
÷ Total assets
= (3,106 + 3,352 + 3,214 + 3,214)
÷ 73,530 = 0.18
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends over the observed periods.
- Revenues
- Revenues demonstrate moderate fluctuations across the quarters, generally ranging between approximately 3,100 million and 3,800 million US dollars. There is a noticeable peak at the end of 2018 with revenues reaching 3,781 million US dollars, followed by a decline in 2019 and early 2020 quarters. The revenue figures show a pattern of slight growth during 2016 and 2017, peaking towards the latter part of 2018 before entering a downward trend in subsequent periods.
- Total Assets
- Total assets steadily declined over the observed timeframe. Beginning above 84,000 million US dollars in early 2016, the asset base decreased consistently each year, reaching approximately 73,530 million US dollars by the first quarter of 2020. This trend suggests possible asset disposals, depreciation, or other factors affecting the asset base size, reflecting a contraction in total asset value during the period.
- Total Asset Turnover
- Total asset turnover exhibited a slight but consistent upward trend. Initially around 0.16-0.17 in 2016, it increased gradually to about 0.18 by early 2018 and maintained stability near that level through to the first quarter of 2020. This gradual increase indicates improving efficiency in asset utilization, with the company generating slightly more revenue per unit of assets over time despite the overall decline in total asset size.
- Overall Insights
- The company experienced a somewhat stable revenue base with seasonal or cyclical fluctuations, peaking near the end of 2018 and declining thereafter. Concurrently, total assets contracted steadily, while asset turnover improved, suggesting enhanced operational efficiency in generating revenues from a smaller asset base. The combination of these trends may indicate strategic adjustments in asset management, aimed at improving productivity despite reduced asset levels.
Equity Turnover
Kinder Morgan Inc., equity turnover calculation (quarterly data)
| Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | Mar 31, 2016 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||
| Revenues | 3,106) | 3,352) | 3,214) | 3,214) | 3,429) | 3,781) | 3,517) | 3,428) | 3,418) | 3,632) | 3,281) | 3,368) | 3,424) | 3,389) | 3,330) | 3,144) | 3,195) | ||||||
| Total Kinder Morgan, Inc.’s stockholders’ equity | 33,106) | 33,742) | 33,633) | 33,638) | 33,612) | 33,678) | 33,487) | 33,035) | 33,667) | 33,636) | 35,225) | 35,149) | 34,645) | 34,431) | 34,606) | 35,111) | 35,180) | ||||||
| Long-term Activity Ratio | |||||||||||||||||||||||
| Equity turnover1 | 0.39 | 0.39 | 0.41 | 0.41 | 0.42 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.39 | 0.40 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
Based on: 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31), 10-K (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30), 10-Q (reporting date: 2016-03-31).
1 Q1 2020 Calculation
Equity turnover
= (RevenuesQ1 2020
+ RevenuesQ4 2019
+ RevenuesQ3 2019
+ RevenuesQ2 2019)
÷ Total Kinder Morgan, Inc.’s stockholders’ equity
= (3,106 + 3,352 + 3,214 + 3,214)
÷ 33,106 = 0.39
2 Click competitor name to see calculations.
The financial data reveals several notable trends in key metrics over the periods analyzed. Revenues exhibit some volatility but generally show a fluctuating pattern without a clear long-term upward or downward trend. From the first quarter of 2016 through the first quarter of 2020, revenues ranged between approximately $3.1 billion and $3.8 billion. Peaks are noticeable in the fourth quarters of 2017 and 2018, with revenues reaching $3.63 billion and $3.78 billion, respectively, suggesting that the company might experience seasonal or cyclical increases toward year-end. However, the most recent quarter reported, March 31, 2020, marks a decrease to roughly $3.1 billion, the lowest level in the displayed timeframe, which may indicate emerging challenges or market pressures.
Stockholders’ equity maintains a relatively stable range over the observed intervals. Values generally fluctuate modestly around the $33 billion to $35 billion mark. There is no clear trend of growth or decline, but a slight downward movement can be observed when comparing the early quarters of 2016 with those in early 2020. Equity peaked around mid-2017 but declined slightly into 2018 before stabilizing again. The marginal decrease by March 2020 could suggest modest reductions in net asset value or distributions impacting equity levels.
The equity turnover ratio reflects the relationship between revenues and stockholders’ equity, and it remains relatively steady over the analyzed period, generally hovering around 0.38 to 0.42. There is a mild increase observed from approximately 0.38 in early 2016 to the peak of 0.42 during 2018 and 2019, which indicates a slight improvement in the efficiency of utilizing equity to generate revenues. However, this ratio appears to taper off to 0.39 by early 2020, coinciding with the noted revenue decrease during the same period.
In summary, the analysis points to a company experiencing consistent but fluctuating quarterly revenues with seasonal peaks, stable stockholders’ equity with minor downward tendencies in the most recent periods, and a relatively constant equity turnover showing marginal efficiency improvements followed by a slight reduction. These patterns suggest a business environment with some cyclical performance drivers and stable capital structure, though the early 2020 downturn in revenue and equity turnover may warrant further investigation into emerging market or operational challenges.