Archrock Inc (AROC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 889,048 | 784,803 | 703,584 | 775,926 | 873,167 |
| Property, plant and equipment | US$ in thousands | 2,301,980 | 2,199,250 | 2,226,530 | 2,389,670 | 2,559,400 |
| Fixed asset turnover | 0.39 | 0.36 | 0.32 | 0.32 | 0.34 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $889,048K ÷ $2,301,980K
= 0.39
Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its investment in fixed assets. In the case of Archrock Inc, the trend in fixed asset turnover over the past five years has shown some fluctuations.
In 2019, the fixed asset turnover ratio was 0.38, and it remained relatively stable in 2020 at 0.37 before decreasing slightly to 0.35 in 2021. However, there was a notable improvement in 2022, with the fixed asset turnover ratio increasing to 0.38. The trend continued positively in 2023, with the ratio reaching 0.43, indicating that the company is generating more revenue relative to its investment in fixed assets.
Overall, the increasing trend in fixed asset turnover suggests that Archrock Inc has been more effective in utilizing its fixed assets to generate revenue, which could be a positive sign of operational efficiency and profitability for the company. However, further analysis and comparison with industry benchmarks are recommended to gain a deeper understanding of the company's performance in this aspect.
Peer comparison
Dec 31, 2023