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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
The analysis of the quarterly financial ratios reveals several noteworthy trends and patterns over the period in question.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio started at 0.36 in March 2015 and exhibited a slight decline to 0.33 by September 2015. Following this dip, the ratio stabilized around 0.34 for several quarters until an increase was observed in late 2018, reaching 0.37. This higher level persisted through most of 2019, before slightly declining to 0.36 by March 2020. Overall, the ratio suggests relatively stable efficiency in generating revenue from fixed assets, with a minor improvement toward the end of the examined period.
- Total Asset Turnover
- The total asset turnover ratio showed a consistent but modest rise over the time frame. Initially at 0.17 in March 2015, it dipped slightly to 0.16 in late 2015 and 2016 but recovered and increased gradually to 0.18 in late 2018. The ratio peaked at 0.19 in December 2019 before settling at 0.18 by March 2020. This indicates a gradual enhancement in the company's efficiency in utilizing its total assets to generate sales, albeit at a relatively low turnover rate typical for asset-intensive industries.
- Equity Turnover
- The equity turnover ratio exhibited some fluctuations but remained relatively steady overall. Beginning at 0.41 in March 2015, it gradually decreased to 0.38 by December 2015 and remained flat through much of 2016 and 2017. Thereafter, a mild upward trend emerged, with the ratio reaching 0.42 through late 2018 and most of 2019. Toward the end of the period, the ratio declined slightly again to 0.39 by March 2020. This pattern indicates small variations in the effectiveness of equity utilization in generating revenue, without significant shifts in operational strategy or capital structure.
In summary, the turnover ratios reflect consistent operational performance with minor fluctuations. The net fixed asset turnover and total asset turnover ratios depict a gradual improvement in asset utilization efficiency, whereas the equity turnover ratio remains more stable with slight variations. No abrupt changes or volatility are observed, suggesting steady management of assets and equity over the periods analyzed.
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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,636) | 3,707) | 3,463) | 3,597) | |||||||
| 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) | 40,547) | 40,608) | 40,586) | 40,289) | |||||||
| 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 | 0.36 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
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 financial data reflects several notable patterns across the reviewed quarters. Revenues exhibit a fluctuating trend, with initial levels around 3,597 million US dollars in the first quarter of 2015, followed by periodic rises and declines. A peak occurs at the end of 2018 with revenues reaching approximately 3,781 million US dollars. Subsequently, revenues generally trend downward, ending at around 3,106 million US dollars in the first quarter of 2020.
Property, plant, and equipment, net, remains relatively stable, showing a modest overall decline through the period. Starting at roughly 40,289 million US dollars in early 2015, there is a gradual downward movement, culminating in about 36,041 million US dollars by the beginning of 2020. This suggests limited new investment or asset disposals influencing the net fixed assets.
The net fixed asset turnover ratio remains consistently steady, fluctuating narrowly between 0.33 and 0.37. This stability indicates that the company’s efficiency in generating revenue from its fixed assets has been maintained without significant improvement or deterioration over time.
- Revenue Trends
- Revenues peaked toward the end of 2018, followed by a declining trend through early 2020. This volatility may indicate sensitivity to market conditions or operational factors influencing sales.
- Property, Plant, and Equipment
- The net value of property, plant, and equipment demonstrates a slow but steady decline, possibly reflecting asset depreciation or divestiture activities without substantial reinvestment.
- Net Fixed Asset Turnover Ratio
- The ratio’s consistent value across quarters indicates stable asset utilization, reflecting no significant changes in productivity relative to fixed asset investments.
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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,636) | 3,707) | 3,463) | 3,597) | |||||||
| 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) | 84,104) | 85,677) | 85,610) | 86,164) | |||||||
| 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 | 0.17 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
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 notable trends in the company's revenue, total assets, and total asset turnover ratio over the period spanning from the first quarter of 2015 to the first quarter of 2020.
- Revenues
- The revenue figures exhibit a fluctuating pattern within the observed timeframe. Revenues initially remain relatively stable around the 3,400 to 3,700 million USD range during 2015. However, there is a discernible decline starting in early 2016, reaching a lower point near 3,100 million USD by the first quarter of 2020. Despite this general downward trend, there are intermittent periods of recovery and growth, such as at the end of 2017 and through 2018, where revenues rise closer to 3,700 million USD again before declining once more. The trend suggests external or operational factors impacting revenue generation cyclically.
- Total Assets
- Total assets demonstrate a slow, gradual decline over the entire period analyzed. Beginning around 86,000 million USD in early 2015, total assets decrease steadily to approximately 73,500 million USD by the first quarter of 2020. This reduction indicates possible asset disposals, depreciation, or reduced investment in asset acquisitions. The stability within short intervals contrasts with a longer-term downward trajectory, reflecting a conservative or optimization-oriented asset management approach.
- Total Asset Turnover Ratio
- The total asset turnover ratio, only available from the third quarter of 2015 onwards, remains relatively stable throughout the periods provided. The ratio fluctuates narrowly between 0.16 and 0.19, with a slight upward trend starting from around 0.16 in late 2015 to near 0.18 or 0.19 by late 2019 and early 2020. This marginal increase suggests a slight improvement in the efficiency with which assets are being utilized to generate revenue. Despite the declining total assets, the company maintains and modestly enhances asset productivity.
In summary, the company experiences a generally declining revenue and total assets base over the examined quarters. However, the slight upward movement in total asset turnover ratio indicates improved operational efficiency. The combination of these patterns may reflect strategic adjustments in asset management or operational focus in response to market conditions or internal considerations.
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 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,636) | 3,707) | 3,463) | 3,597) | |||||||
| 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) | 35,119) | 35,514) | 35,172) | 35,029) | |||||||
| 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 | 0.41 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Chevron Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum 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), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31).
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.
- Revenues
- The revenue figures exhibit seasonal fluctuations with some underlying trends observable. From March 31, 2015, to December 31, 2015, revenues remained relatively stable, fluctuating between approximately 3,463 million and 3,707 million USD. In the first half of 2016, revenues declined slightly, reaching a low of 3,144 million USD in the second quarter, followed by a gradual recovery toward the end of the year.
- Between 2017 and 2018, revenues showed moderate variability, generally oscillating around the mid-3,300 to 3,700 million USD range. A noticeable peak occurred in December 2018, with revenues reaching 3,781 million USD. However, starting in 2019, revenues demonstrated a downward trend, declining steadily from 3,429 million USD in the first quarter to a low of 3,106 million USD in the first quarter of 2020, reflecting a weakening top-line performance over the one-year span.
- Total Kinder Morgan, Inc.’s Stockholders’ Equity
- Stockholders’ equity maintained a relatively stable profile over the reported periods, oscillating between around 33,000 million and 35,000 million USD. There was a slight decline observable over the years, particularly from late 2016 through early 2018, where equity decreased from over 34,000 million USD to the low 33,000 million USD range.
- In the periods from 2018 to early 2020, equity levels stabilized in the 33,000 to 34,000 million USD bracket, with minor fluctuations but no significant trend toward increase or decrease. This stability suggests balanced shareholder value maintenance despite variations in revenue.
- Equity Turnover
- Equity turnover ratios are available from the end of 2015 onward, showing a gradual decline from 0.41 at December 31, 2015, to a low of 0.38 in early to late 2016. Subsequently, the ratio rose slightly to approximately 0.42 in late 2017 through mid-2019, indicating improved utilization of equity for generating revenues.
- Toward the end of the period, a marginal decrease in equity turnover to around 0.39 is observed, suggesting a slight reduction in the efficiency of equity usage relative to revenues. Overall, equity turnover remained in a narrow range, indicative of steady but modest changes in operational efficiency concerning equity capital.