ConocoPhillips (COP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 56,141,000 | 78,494,000 | 45,828,000 | 18,784,000 | 36,670,000 |
| Property, plant and equipment | US$ in thousands | 69,219,000 | 64,866,000 | 64,911,000 | 39,893,000 | 42,269,000 |
| Fixed asset turnover | 0.81 | 1.21 | 0.71 | 0.47 | 0.87 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $56,141,000K ÷ $69,219,000K
= 0.81
Conoco Phillips' fixed asset turnover has exhibited fluctuations over the past five years. The ratio decreased from 0.77 in 2019 to 0.47 in 2020, indicating a decline in the company's ability to generate revenue from its fixed assets. However, there was a significant improvement in 2021, with the ratio increasing to 0.71, suggesting better utilization of fixed assets to generate sales. This positive trend continued into 2022, with a further increase to 1.21, indicating enhanced efficiency in utilizing fixed assets to generate revenue.
However, in 2023, the fixed asset turnover ratio declined to 0.80. While this ratio is lower than the previous year, it is higher than the ratios observed in 2020 and 2019. This suggests that Conoco Phillips may still be improving its efficiency in utilizing fixed assets to generate sales, although not at the same level as in 2022. Further analysis of the company's operational and financial performance would be necessary to understand the underlying reasons for these fluctuations in the fixed asset turnover ratio.
Peer comparison
Dec 31, 2023