Chord Energy Corp (CHRD)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2019	Dec 31, 2018
Revenue	US$ in thousands	3,865,450	4,141,210	1,771,930	1,895,380	2,177,600
Property, plant and equipment	US$ in thousands	5,314,680	4,711,340	1,320,430	6,977,780	7,027,110
Fixed asset turnover		0.73	0.88	1.34	0.27	0.31

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,865,450K ÷ $5,314,680K
= 0.73

Chord Energy Corp's fixed asset turnover has been consistently declining over the past three years. This ratio decreased from 1.20 in 2021 to 0.77 in 2022, and further dropped to 0.73 in 2023. A lower fixed asset turnover indicates that the company is generating less revenue relative to its investment in fixed assets. This trend suggests that Chord Energy Corp may not be effectively utilizing its fixed assets to generate sales. It would be essential for the company to investigate the reasons behind this decreasing ratio and implement strategies to improve the efficiency of utilizing its fixed assets to enhance financial performance.