Crescent Energy Co (CRGY)

Fixed asset turnover

Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022
Revenue (ttm) US$ in thousands 2,646,661 2,538,498 2,346,426 2,358,036 2,480,668 2,718,370 3,140,656 3,277,012 2,947,635
Property, plant and equipment US$ in thousands 8,208,280 6,044,110 6,167,310 6,097,330 6,013,530 5,483,070 5,504,850 5,437,770 5,507,420
Fixed asset turnover 0.32 0.42 0.38 0.39 0.41 0.50 0.57 0.60 0.54

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,646,661K ÷ $8,208,280K
= 0.32

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenues from its fixed assets. Crescent Energy Co's fixed asset turnover has fluctuated over the past several quarters, ranging from as low as 0.32 to as high as 0.60.

For the most recent quarter ending September 30, 2024, Crescent Energy Co's fixed asset turnover was 0.32, indicating that the company generated $0.32 in revenue for every dollar invested in fixed assets during that period. This is a decrease from the previous quarter's ratio of 0.42.

The trend of declining fixed asset turnover over the past few quarters may suggest that Crescent Energy Co's ability to generate revenue from its fixed assets has weakened. A lower fixed asset turnover ratio could be a sign of underutilized or inefficiently used fixed assets, which might be negatively impacting the company's overall profitability.

It would be important for Crescent Energy Co to investigate the reasons behind the declining fixed asset turnover and take measures to improve asset efficiency and utilization in order to enhance its financial performance. Monitoring and analyzing this ratio regularly can help the company make informed decisions about its asset management strategies and operational efficiency.