Archrock Inc (AROC)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,142,169	1,036,877	972,925	921,312	884,635	850,029	813,492	785,951	753,160	724,464	705,631	683,916	685,067	688,377	699,129	720,039	768,969	841,112	878,250	896,466
Property, plant and equipment	US$ in thousands	3,323,830	3,261,030	2,372,070	2,332,010	2,301,980	2,302,420	2,300,590	2,246,240	2,199,250	2,214,670	2,211,740	2,230,130	2,226,530	2,252,230	2,322,400	2,342,080	2,389,670	2,434,730	2,486,070	2,561,920
Fixed asset turnover		0.34	0.32	0.41	0.40	0.38	0.37	0.35	0.35	0.34	0.33	0.32	0.31	0.31	0.31	0.30	0.31	0.32	0.35	0.35	0.35

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,142,169K ÷ $3,323,830K
= 0.34

The fixed asset turnover ratio of Archrock Inc has shown fluctuations over the period analyzed, ranging from 0.30 to 0.41. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets to generate sales.

From March 31, 2020, to June 30, 2024, the fixed asset turnover of Archrock Inc remained relatively stable, hovering around 0.30 to 0.41, with a peak of 0.41 on June 30, 2024.

It is worth noting that there was a decline in the ratio towards the end of 2024, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate revenue during that period. Further analysis of the company's operational and financial strategies may be required to understand the factors contributing to these fluctuations in fixed asset turnover.