Archrock Inc (AROC)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,172,300	889,048	784,803	703,584	775,926
Property, plant and equipment	US$ in thousands	3,323,830	2,301,980	2,199,250	2,226,530	2,389,670
Fixed asset turnover		0.35	0.39	0.36	0.32	0.32

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,172,300K ÷ $3,323,830K
= 0.35

Fixed asset turnover is a measure that indicates how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Archrock Inc, the fixed asset turnover has shown a somewhat fluctuating trend over the years.

As of December 31, 2020, the fixed asset turnover was 0.32, indicating that for every dollar invested in fixed assets, the company generated $0.32 in revenue. This ratio remained unchanged at 0.32 in the following year, signifying a consistent level of efficiency in asset utilization.

By December 31, 2022, the fixed asset turnover improved slightly to 0.36, suggesting that Archrock Inc was able to generate more revenue per dollar of fixed assets invested. This trend continued into 2023, with the ratio increasing to 0.39, indicating further improvement in asset efficiency.

However, by December 31, 2024, the fixed asset turnover declined to 0.35, reversing the previous positive trend. This decline could signal potential challenges in effectively utilizing fixed assets to generate revenue during that period.

Overall, while there have been fluctuations in Archrock Inc's fixed asset turnover over the years, the company has shown some improvements in efficiently utilizing its fixed assets to generate revenue, though there was a slight setback in the most recent year. Further analysis of the company's operational and strategic initiatives may provide insights into the factors influencing these fluctuations.