Crescent Energy Co (CRGY)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 2,451,980 | 3,794,960 | 1,967,760 |
| Total assets | US$ in thousands | 6,803,340 | 6,019,850 | 5,157,460 |
| Total asset turnover | 0.36 | 0.63 | 0.38 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,451,980K ÷ $6,803,340K
= 0.36
Total asset turnover is a financial ratio that indicates the efficiency with which a company is utilizing its assets to generate revenue. A higher total asset turnover ratio typically implies better efficiency in asset utilization.
In the case of Crescent Energy Co, the total asset turnover ratio has fluctuated over the past three years. In 2021, the ratio was 0.38, indicating that for each dollar of assets, the company generated $0.38 in revenue. This suggests that the company may not have been efficiently utilizing its assets to generate sales.
However, in 2022, the total asset turnover ratio improved to 0.63, signaling a significant increase in efficiency in asset utilization. This improvement could be attributed to various factors such as better management of inventory, more effective use of fixed assets, or increased sales volume.
Subsequently, in 2023, the total asset turnover ratio decreased to 0.36, which may indicate a potential decline in asset efficiency compared to the previous year. This reduction could be a cause for concern as it suggests that the company may not be generating as much revenue relative to its asset base.
Overall, the trend in Crescent Energy Co's total asset turnover indicates some level of variability in asset utilization efficiency over the past three years. Further analysis and comparison with industry benchmarks may be necessary to understand the underlying factors driving these fluctuations and to determine the company's overall performance in utilizing its assets effectively.
Peer comparison
Dec 31, 2023