ConocoPhillips (COP)

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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	56,141,000	59,970,000	66,733,000	75,543,000	78,494,000	75,056,000	65,369,000	53,764,000	45,828,000	36,285,000	29,339,000	23,799,000	18,784,000	21,347,000	27,060,000	31,424,000	36,670,000	38,891,000	38,963,000	39,544,000
Property, plant and equipment	US$ in thousands	69,219,000	65,561,000	65,452,000	65,090,000	64,866,000	63,673,000	64,008,000	64,642,000	64,911,000	56,689,000	57,717,000	58,270,000	39,893,000	41,269,000	41,120,000	40,645,000	42,269,000	43,814,000	44,334,000	45,942,000
Fixed asset turnover		0.81	0.91	1.02	1.16	1.21	1.18	1.02	0.83	0.71	0.64	0.51	0.41	0.47	0.52	0.66	0.77	0.87	0.89	0.88	0.86

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $56,141,000K ÷ $69,219,000K
= 0.81

Conoco Phillips' fixed asset turnover ratio has fluctuated over the past eight quarters. The ratio was at its lowest in Q4 2023 at 0.80 and has shown an upward trend since then, reaching its peak in Q4 2022 at 1.21. This indicates that the company's ability to generate revenue from its fixed assets has improved significantly. However, the ratio dipped slightly in Q1 2023 to 1.16 before increasing again in Q2 2023 and Q3 2023 to 1.02 and 0.91, respectively.

Overall, the upward trend in fixed asset turnover ratio suggests that Conoco Phillips has been utilizing its fixed assets more efficiently to generate sales revenue. This may be attributed to better asset management strategies, improved operational efficiency, or increased demand for the company's products and services. Nonetheless, it is important for the company to monitor and sustain this trend to ensure continued profitability and growth.