Comstock Resources Inc (CRK)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,583,855	2,112,604	2,642,492	3,180,232	2,703,372	2,341,239	1,975,138	1,536,563	1,512,092	1,161,907	828,742	599,361	817,942	816,538	836,814	836,768	693,175	557,482	412,556	311,050
Property, plant and equipment	US$ in thousands	5,384,770	5,219,960	5,026,000	4,859,700	4,622,660	4,440,020	4,313,200	4,128,890	4,007,150	4,234,480	4,195,770	4,144,450	4,084,550	4,012,350	4,000,640	4,029,110	4,008,800	3,917,010	1,765,440	1,722,560
Fixed asset turnover		0.29	0.40	0.53	0.65	0.58	0.53	0.46	0.37	0.38	0.27	0.20	0.14	0.20	0.20	0.21	0.21	0.17	0.14	0.23	0.18

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,583,855K ÷ $5,384,770K
= 0.29

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. A higher ratio indicates that the company is more efficient in using its fixed assets to generate sales.

Analyzing the fixed asset turnover of Comstock Resources, Inc. over the past eight quarters, we observe fluctuations in the ratio. The ratio has shown a declining trend from Q4 2022 to Q4 2023, starting at 0.78 and decreasing to 0.29. This significant decrease indicates a potential inefficiency in utilizing the company's fixed assets to generate revenue.

However, it is important to note that the fixed asset turnover ratio fluctuated throughout the period, with some quarters showing higher ratios, such as Q1 2023 with a ratio of 0.74. This variability may be attributed to changes in the company's operations and capital investment strategies during these periods.

Overall, the downward trend in fixed asset turnover suggests that Comstock Resources, Inc. may need to evaluate its fixed asset utilization efficiency and consider strategies to improve revenue generation from its fixed assets in order to enhance operational performance and profitability.