Coterra Energy Inc (CTRA)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,458,000 | 5,914,000 | 9,051,000 | 3,449,000 | 1,466,000 |
| Property, plant and equipment | US$ in thousands | 17,890,000 | 17,933,000 | 17,479,000 | 17,375,000 | 4,045,000 |
| Fixed asset turnover | 0.31 | 0.33 | 0.52 | 0.20 | 0.36 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,458,000K ÷ $17,890,000K
= 0.31
The fixed asset turnover ratio measures how effectively a company generates revenue from its investment in fixed assets. Looking at the data provided for Coterra Energy Inc, we observe fluctuations in the fixed asset turnover over the years.
In 2020, the fixed asset turnover was 0.36, indicating that for every dollar invested in fixed assets, Coterra generated $0.36 in revenue. This ratio decreased to 0.20 in 2021, suggesting a decline in efficiency in utilizing its fixed assets to generate revenue.
However, there was a significant improvement in 2022 with a fixed asset turnover of 0.52, indicating that Coterra was able to generate more revenue from its fixed assets that year. Despite the increase, the ratio dropped to 0.33 in 2023 and further to 0.31 in 2024.
The fluctuating trend in Coterra's fixed asset turnover ratios suggests varying levels of efficiency in utilizing its fixed assets to generate revenue over the years. It would be essential for the company to analyze the reasons behind these fluctuations and work towards maintaining or improving its efficiency in utilizing fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2024