Crescent Energy Co (CRGY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	2,451,980	3,794,960	1,967,760
Property, plant and equipment	US$ in thousands	6,097,330	5,437,770	4,549,860
Fixed asset turnover		0.40	0.70	0.43

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,451,980K ÷ $6,097,330K
= 0.40

Fixed asset turnover is a key financial ratio that measures a company's ability to generate sales revenue in relation to its investment in fixed assets. Crescent Energy Co's fixed asset turnover has shown fluctuations over the past three years.

In 2021, the fixed asset turnover was 0.43, indicating that for every dollar invested in fixed assets, Crescent Energy Co generated $0.43 in sales revenue. This suggests that the company may not have been efficiently utilizing its fixed assets to generate revenue.

In 2022, there was an improvement in the fixed asset turnover to 0.70, indicating that the company managed to generate more sales revenue for each dollar invested in fixed assets compared to the previous year. This could indicate better asset utilization or increased sales efficiency.

However, in 2023, the fixed asset turnover decreased to 0.40, signaling a decline in the company's ability to generate sales revenue from its fixed assets. This could be a concerning trend as it may suggest inefficiencies in asset utilization or challenges in generating revenue from fixed assets.

Overall, Crescent Energy Co's fixed asset turnover has been inconsistent over the past three years, indicating the need for a closer examination of the company's fixed asset management strategies and sales performance.