Crescent Energy Co (CRGY)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,930,920	2,382,600	3,057,060	1,476,980	754,221
Total assets	US$ in thousands	9,333,220	6,803,340	6,019,850	5,157,460	3,907,370
Total asset turnover		0.31	0.35	0.51	0.29	0.19

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $2,930,920K ÷ $9,333,220K
= 0.31

Total asset turnover measures how efficiently a company is generating sales revenue from its total assets. In the case of Crescent Energy Co, the total asset turnover ratio has shown fluctuations over the past five years.

As of December 31, 2020, the total asset turnover was 0.19, indicating that for every dollar of assets, Crescent Energy generated $0.19 in sales. This is relatively low and suggests that the company may not be effectively utilizing its assets to generate revenue.

By December 31, 2021, the total asset turnover ratio improved to 0.29, indicating that Crescent Energy was able to generate $0.29 in sales for each dollar of assets. This uptick suggests better asset utilization or potentially higher sales efficiency.

The ratio surged to 0.51 by December 31, 2022, reflecting a significant improvement in asset turnover efficiency. Crescent Energy was able to generate $0.51 in sales for every dollar of assets during this year, signaling improved operational performance.

However, the ratio dipped to 0.35 by December 31, 2023, indicating a slight decrease in the efficiency of asset utilization compared to the previous year. This could be a result of various factors impacting sales or asset management strategies during this period.

Finally, by December 31, 2024, the total asset turnover ratio further decreased to 0.31, suggesting a potential decline in the company's ability to generate sales from its assets efficiently. This could raise concerns about the company's operational effectiveness and the management of its asset base.

Overall, Crescent Energy Co's total asset turnover has shown varying levels of efficiency over the past five years, with fluctuations indicating changes in the company's asset management and sales performance. Continued monitoring of this ratio will be crucial to assess the company's operational effectiveness and asset utilization strategies.