California Resources Corp (CRC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,198,000 | 2,801,000 | 2,707,000 | 1,889,000 | 2,634,000 |
| Property, plant and equipment | US$ in thousands | 5,677,000 | 2,770,000 | 2,786,000 | 2,599,000 | 6,352,000 |
| Fixed asset turnover | 0.56 | 1.01 | 0.97 | 0.73 | 0.41 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,198,000K ÷ $5,677,000K
= 0.56
Fixed asset turnover is a key financial ratio that helps us evaluate how efficiently a company utilizes its fixed assets to generate revenue. Looking at the data provided for California Resources Corp over the five-year period, we see a fluctuating trend in fixed asset turnover.
In December 31, 2019, the fixed asset turnover ratio was 0.41, indicating that for every dollar invested in fixed assets, the company generated $0.41 in revenue. This suggests that the company was not efficiently utilizing its fixed assets to generate sales.
Over the next few years, we observe an improvement in the ratio. By December 31, 2023, the fixed asset turnover had increased to 1.01, indicating that the company was generating $1.01 in revenue for every dollar invested in fixed assets. This significant improvement suggests a better utilization of fixed assets to drive revenue growth.
However, by December 31, 2024, we see a decline in the fixed asset turnover ratio to 0.56. This decrease could be a cause for concern as it may indicate a potential decrease in the efficiency of the company's fixed asset utilization in generating revenue.
Overall, while there have been fluctuations in the fixed asset turnover ratio for California Resources Corp over the years, it is crucial for the company to focus on maintaining and improving the efficiency of its fixed asset utilization to drive sustainable revenue growth in the future.
Peer comparison
Dec 31, 2024