Chesapeake Energy Corp (CHK)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,721,000 | 11,743,000 | 5,549,000 | 5,240,000 | 8,532,000 |
| Property, plant and equipment | US$ in thousands | 10,097,000 | 11,187,000 | 8,802,000 | 5,242,000 | 14,756,000 |
| Fixed asset turnover | 0.86 | 1.05 | 0.63 | 1.00 | 0.58 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,721,000K ÷ $10,097,000K
= 0.86
Fixed asset turnover is a financial ratio that measures how efficiently a company generates revenue from its investment in fixed assets. Chesapeake Energy Corp's fixed asset turnover ratio has fluctuated over the past five years, ranging from 0.58 to 1.05. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
In 2023, the fixed asset turnover ratio is 0.86, which suggests that for every dollar invested in fixed assets, Chesapeake Energy Corp generated $0.86 in sales. Compared to the previous year, the ratio decreased from 1.05 to 0.86, indicating a decline in efficiency in utilizing fixed assets to generate revenue.
It is important for Chesapeake Energy Corp to carefully monitor its fixed asset turnover ratio and investigate the reasons behind any fluctuations. A decreasing ratio may indicate potential inefficiencies in asset utilization or changes in the company's business operations that require attention and improvement. Conversely, an increasing ratio may signify improved efficiency in utilizing fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023