Chord Energy Corp (CHRD)

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 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018
Revenue (ttm) US$ in thousands 3,862,929 3,922,232 3,986,992 3,864,580 4,140,141 3,571,117 2,780,208 2,624,106 1,804,786 1,597,593 1,329,219 1,090,044 1,227,058 1,430,029 1,795,055 1,936,243 2,052,134 2,157,750 2,173,144 2,066,018
Property, plant and equipment US$ in thousands 5,314,680 5,256,030 5,167,910 4,778,010 4,711,340 4,656,060 1,337,070 1,336,340 1,320,430 1,582,840 1,554,680 1,719,550 2,115,850 2,152,190 2,148,680 6,977,780 7,089,610 7,169,110 7,056,740 7,027,110
Fixed asset turnover 0.73 0.75 0.77 0.81 0.88 0.77 2.08 1.96 1.37 1.01 0.85 0.63 0.58 0.66 0.84 0.28 0.29 0.30 0.31 0.29

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,862,929K ÷ $5,314,680K
= 0.73

The fixed asset turnover ratio for Chord Energy Corp has shown some fluctuations over the past eight quarters. In Q1 2022, the ratio was relatively high at 1.40, indicating that the company generated $1.40 in sales for every $1 invested in fixed assets during that period. However, in Q2 2022, the ratio dramatically increased to 1.70, suggesting a significant improvement in the efficiency of utilizing fixed assets to generate revenue.

Subsequently, the fixed asset turnover ratio decreased consistently over the next five quarters and reached its lowest point of 0.73 in Q4 2023. This decline may indicate a decrease in the company's ability to generate sales from its fixed assets efficiently. The downward trend in the ratio from Q2 2022 to Q4 2023 suggests that either the company's sales were not growing in line with its investment in fixed assets or that the efficiency of utilizing fixed assets declined over this period.

Overall, the trend in Chord Energy Corp's fixed asset turnover ratio indicates fluctuations in the efficiency of utilizing fixed assets to generate revenue. It would be essential for the company to investigate the reasons behind these fluctuations and take necessary steps to improve the management of its fixed assets for better operational performance in the future.