APA Corporation (APA)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	9,737,000	8,279,000	11,075,000	7,985,000	4,435,000
Total assets	US$ in thousands	19,390,000	15,244,000	13,147,000	13,303,000	12,746,000
Total asset turnover		0.50	0.54	0.84	0.60	0.35

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $9,737,000K ÷ $19,390,000K
= 0.50

Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. Looking at APA Corporation's total asset turnover over the past five years, we observe a fluctuating trend.

In 2020, the total asset turnover was 0.35, indicating that for every dollar of total assets, APA Corporation generated $0.35 in revenue. This suggests a lower efficiency in utilizing its assets to generate sales.

However, in 2021, there was a notable improvement as the total asset turnover increased to 0.60, indicating a more efficient use of assets to generate revenue. This improvement continued in 2022, with the ratio further increasing to 0.84, showing a significant enhancement in asset utilization.

In 2023, there was a decrease in total asset turnover to 0.54, indicating a slight drop in efficiency in generating revenue from assets compared to the previous year. This decline was also observed in 2024, where the total asset turnover further decreased to 0.50, suggesting that APA Corporation may have faced challenges in optimizing asset efficiency during that year.

Overall, APA Corporation's total asset turnover has seen fluctuations over the years, with notable improvements in certain periods and some declines in others. It is essential for the company to constantly monitor and enhance its asset utilization to ensure sustainable growth and profitability.