APA Corporation (APA)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,279,000 | 1,874,000 | 7,985,000 | 4,308,000 | 6,553,000 |
| Property, plant and equipment | US$ in thousands | 217,000 | 206,000 | 225,000 | 8,819,000 | 14,158,000 |
| Fixed asset turnover | 38.15 | 9.10 | 35.49 | 0.49 | 0.46 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,279,000K ÷ $217,000K
= 38.15
APA Corporation's fixed asset turnover has fluctuated over the past five years, ranging from 0.45 in 2019 to 1.25 in 2022. The fixed asset turnover indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover is generally preferred as it suggests that the company is generating more revenue per dollar of fixed assets.
In 2023, the fixed asset turnover was 0.83, which indicates that for every dollar invested in fixed assets, APA Corporation generated $0.83 in revenue. This represents a decrease from the previous year's ratio of 1.25. The decrease in fixed asset turnover could be attributed to various factors, such as a decrease in revenue or an increase in the value of fixed assets.
Overall, APA Corporation's fixed asset turnover has shown fluctuation over the years, and further analysis would be needed to understand the underlying reasons for these changes and to assess the company's efficiency in utilizing its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023