APA Corporation (APA)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,279,000 | 8,584,000 | 9,163,000 | 10,414,000 | 10,539,000 | 10,366,000 | 9,538,000 | 8,247,000 | 6,164,000 | 5,154,000 | 4,239,000 | 3,079,000 | 4,308,000 | 4,644,000 | 5,000,000 | 6,022,000 | 6,400,000 | 6,478,000 | 6,954,000 | 7,272,000 |
| Property, plant and equipment | US$ in thousands | 217,000 | 9,500,000 | 42,117,000 | 41,658,000 | 206,000,000 | 40,939,000 | 40,548,000 | 40,223,000 | 225,000,000 | 8,113,000 | 8,297,000 | 8,544,000 | 8,819,000 | 9,067,000 | 9,344,000 | 9,586,000 | 14,158,000 | 17,655,000 | 17,756,000 | 18,291,000 |
| Fixed asset turnover | 38.15 | 0.90 | 0.22 | 0.25 | 0.05 | 0.25 | 0.24 | 0.21 | 0.03 | 0.64 | 0.51 | 0.36 | 0.49 | 0.51 | 0.54 | 0.63 | 0.45 | 0.37 | 0.39 | 0.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,279,000K ÷ $217,000K
= 38.15
The fixed asset turnover ratio measures a company's ability to generate sales revenue relative to its investment in fixed assets. A higher fixed asset turnover indicates that the company is using its fixed assets more efficiently to generate revenue.
From the data provided, we can observe fluctuations in APA Corporation's fixed asset turnover over the past eight quarters. The trend shows a general decrease from Q1 2022 to Q2 2023, with values ranging from 0.83 to 1.25.
A fixed asset turnover of 1.15 in Q1 2023 indicates that for every dollar invested in fixed assets, the company generated $1.15 in sales revenue. This suggests that APA Corporation's fixed assets were utilized effectively during that quarter. However, the subsequent decrease in Q2 and Q3 2023 to 0.99 and 0.92, respectively, may raise concerns about the company's declining efficiency in utilizing fixed assets to drive sales.
It is worth noting that the fixed asset turnover ratio is influenced by various factors, including industry dynamics, capital-intensive investments, and operational efficiency. Therefore, further analysis is required to understand the underlying drivers of the fluctuations in APA Corporation's fixed asset turnover and to evaluate its impact on the company's overall financial performance and operational strategy.
Peer comparison
Dec 31, 2023