Arch Resources Inc (ARCH)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,129,900 | 3,689,710 | 2,121,840 | 1,453,160 | 2,275,990 |
| Property, plant and equipment | US$ in thousands | 1,228,890 | 1,187,030 | 1,120,040 | 1,007,300 | 984,509 |
| Fixed asset turnover | 2.55 | 3.11 | 1.89 | 1.44 | 2.31 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,129,900K ÷ $1,228,890K
= 2.55
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales relative to the investment in fixed assets.
Analyzing the fixed asset turnover of Arch Resources Inc over the past five years, we observe fluctuations in the ratio. In 2023, the ratio stands at 2.55, down from 3.11 in 2022, indicating a decrease in the efficiency of utilizing fixed assets to generate revenue. However, it is still higher compared to the ratios in 2021 (1.89) and 2020 (1.44).
The highest ratio was seen in 2022 at 3.11, suggesting that the company was able to generate more sales relative to its investment in fixed assets during that year. In contrast, the lowest ratio was recorded in 2020 at 1.44, indicating a lower efficiency in utilizing fixed assets to generate revenue.
Overall, the trend in the fixed asset turnover ratio for Arch Resources Inc fluctuates year over year, and further analysis is needed to understand the factors driving these changes and to assess the company's operational efficiency in utilizing its fixed assets effectively.
Peer comparison
Dec 31, 2023