Archrock Inc (AROC)
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 | 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 | 884,844 | 872,016 | 863,322 | 858,072 |
| Property, plant and equipment | US$ in thousands | 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 | 2,559,400 | 2,580,320 | 2,294,370 | 2,265,880 |
| Fixed asset turnover | 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 | 0.35 | 0.34 | 0.38 | 0.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $884,635K ÷ $2,301,980K
= 0.38
Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.
In the case of Archrock Inc, the fixed asset turnover ratios have been relatively stable over the past eight quarters, ranging from 0.35 to 0.43. This suggests that the company has been able to consistently generate revenue from its fixed assets.
The increasing trend in the fixed asset turnover ratio from Q1 2022 to Q4 2023 indicates that Archrock Inc has improved its efficiency in utilizing its fixed assets to generate sales over the period. This could be attributed to better asset management or increased sales volume without a proportional increase in fixed assets.
Overall, the fixed asset turnover ratio provides insights into Archrock Inc's operational efficiency and asset utilization, indicating its ability to generate revenue relative to its investment in fixed assets.
Peer comparison
Dec 31, 2023