Arch Resources Inc (ARCH)
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 | 3,129,896 | 3,214,888 | 3,332,788 | 3,697,621 | 3,689,711 | 3,567,460 | 3,296,340 | 2,625,198 | 2,121,844 | 1,745,170 | 1,536,181 | 1,404,731 | 1,453,160 | 1,646,594 | 1,882,740 | 2,132,589 | 2,281,496 | 2,382,979 | 2,395,562 | 2,416,529 |
| Property, plant and equipment | US$ in thousands | 1,228,890 | 1,200,110 | 1,192,680 | 1,182,350 | 1,187,030 | 1,116,550 | 1,108,930 | 1,111,360 | 1,120,040 | 1,135,400 | 1,102,570 | 1,058,940 | 1,007,300 | 964,472 | 1,066,610 | 1,035,780 | 984,509 | 889,295 | 870,889 | 848,749 |
| Fixed asset turnover | 2.55 | 2.68 | 2.79 | 3.13 | 3.11 | 3.20 | 2.97 | 2.36 | 1.89 | 1.54 | 1.39 | 1.33 | 1.44 | 1.71 | 1.77 | 2.06 | 2.32 | 2.68 | 2.75 | 2.85 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,129,896K ÷ $1,228,890K
= 2.55
The fixed asset turnover ratio for Arch Resources Inc has shown fluctuations over the past few years. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
From March 2019 to June 2022, the fixed asset turnover ratio steadily increased from 1.39 to 2.97, indicating improved efficiency in generating revenue from its fixed assets during this period. This suggests that Arch Resources Inc was able to generate more sales relative to its investment in fixed assets.
However, there was a decrease in the ratio in the subsequent quarters, reaching a low of 1.33 in March 2021. This decline could indicate potential inefficiencies in utilizing its fixed assets to generate sales during that period.
The ratio then showed improvement, reaching a peak of 3.13 in March 2023 before slightly decreasing to 2.55 in December 2023. This increase and subsequent decrease suggest fluctuations in the company's ability to generate revenue from its fixed assets over the recent quarters.
Overall, while the fixed asset turnover ratio has shown some variability, it is important for Arch Resources Inc to focus on maintaining or improving this ratio to ensure efficient utilization of its fixed assets and maximize revenue generation.
Peer comparison
Dec 31, 2023