Consol Energy Inc (CEIX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,568,880 | 2,101,940 | 1,258,950 | 1,021,640 | 1,430,900 |
| Property, plant and equipment | US$ in thousands | 1,903,120 | 1,960,080 | 1,978,550 | 2,049,060 | 2,092,160 |
| Fixed asset turnover | 1.35 | 1.07 | 0.64 | 0.50 | 0.68 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,568,880K ÷ $1,903,120K
= 1.35
The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investments in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.
Consol Energy Inc's fixed asset turnover has shown improvement over the past five years. In 2023, the ratio stands at 1.32, which indicates that the company generated $1.32 in sales for every $1 invested in fixed assets. This represents an improvement from 2022 when the ratio was 1.16.
The significant increase in fixed asset turnover from 2021 to 2023 reflects a more efficient utilization of fixed assets to generate sales revenue. This improvement suggests that Consol Energy Inc has been able to increase its revenue generation without significantly increasing its investment in fixed assets.
However, it is worth noting that the ratio fluctuated over the years, with a low of 0.43 in 2020 and a high of 1.32 in 2023. This indicates potential variability in the company's ability to effectively utilize its fixed assets to generate sales. Investors and analysts may want to further investigate the factors contributing to these fluctuations in fixed asset turnover to assess the company's overall performance and efficiency in managing its fixed assets.
Peer comparison
Dec 31, 2023