CVR Energy Inc (CVI)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,610,000 | 9,247,000 | 10,896,000 | 7,242,000 | 3,930,000 |
| Property, plant and equipment | US$ in thousands | 2,176,000 | 2,221,000 | 2,247,000 | 2,273,000 | 2,240,000 |
| Fixed asset turnover | 3.50 | 4.16 | 4.85 | 3.19 | 1.75 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,610,000K ÷ $2,176,000K
= 3.50
Fixed asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its fixed assets. Looking at the data provided for CVR Energy Inc, the trend in fixed asset turnover over the last five years is as follows:
- In December 31, 2020, the fixed asset turnover ratio was 1.75, indicating that the company generated $1.75 in sales for every dollar invested in fixed assets.
- The ratio significantly improved to 3.19 by December 31, 2021, demonstrating that the company became more efficient in utilizing its fixed assets to generate sales revenue.
- By December 31, 2022, the fixed asset turnover ratio further increased to 4.85, reaching its highest point in the period under review. This indicates that CVR Energy Inc was able to generate $4.85 in sales for every dollar of fixed assets invested.
- However, by December 31, 2023, the ratio declined to 4.16, showing a slight decrease in the efficiency of the company in utilizing its fixed assets to generate revenue.
- The trend continued in December 31, 2024, with the fixed asset turnover ratio decreasing to 3.50. Although lower than the peak in 2022, the ratio still indicates that CVR Energy Inc is effectively utilizing its fixed assets to generate sales.
Overall, the increasing trend from 2020 to 2022 reflects improved efficiency in asset utilization, while the slight decline in the subsequent years suggests some fluctuations in asset turnover. It is important for CVR Energy Inc to monitor and manage its fixed asset turnover to ensure optimal utilization of assets and maximize revenue generation.
Peer comparison
Dec 31, 2024