California Resources Corp (CRC)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,801,000 | 2,707,000 | 1,889,000 | 2,634,000 | 3,064,000 |
| Total assets | US$ in thousands | 3,998,000 | 3,967,000 | 3,846,000 | 6,958,000 | 7,158,000 |
| Total asset turnover | 0.70 | 0.68 | 0.49 | 0.38 | 0.43 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,801,000K ÷ $3,998,000K
= 0.70
Total asset turnover is a significant financial ratio that measures how efficiently a company utilizes its assets to generate revenue. California Resources Corporation's total asset turnover has shown an improving trend over the past three years. In 2021, the total asset turnover was 0.49, indicating that the company generated $0.49 in revenue for every $1 of assets. This ratio increased to 0.68 in 2022 and further to 0.70 in 2023, suggesting that the company's efficiency in utilizing assets to generate revenue has been improving.
A total asset turnover ratio of less than 1 may indicate that the company is not effectively utilizing its assets to generate revenue. However, an increasing trend in the total asset turnover ratio over multiple years indicates a positive trend towards improved asset utilization efficiency. California Resources Corporation's increasing total asset turnover ratio suggests that the company is becoming more efficient in generating revenue from its assets, which can be a positive indicator of operational efficiency and management effectiveness.
Peer comparison
Dec 31, 2023