Chevron Corp (CVX)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 200,949,000 | 246,252,000 | 162,465,000 | 94,692,000 | 146,516,000 |
| Property, plant and equipment | US$ in thousands | 153,036,000 | 143,591,000 | 146,961,000 | 156,618,000 | 150,494,000 |
| Fixed asset turnover | 1.31 | 1.71 | 1.11 | 0.60 | 0.97 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $200,949,000K ÷ $153,036,000K
= 1.31
Chevron Corp.'s fixed asset turnover ratio has fluctuated over the past five years, as evidenced by the values of 1.28, 1.64, 1.06, 0.60, and 0.93 for the years 2023, 2022, 2021, 2020, and 2019, respectively. The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.
A higher fixed asset turnover ratio indicates that Chevron is generating more revenue for each dollar invested in fixed assets. In this case, the ratio increased from 0.93 in 2019 to 1.64 in 2022, suggesting an improvement in the company's ability to generate revenue from its fixed assets. However, the ratio decreased to 1.28 in 2023, indicating a potential decline in efficiency in utilizing fixed assets to generate revenue.
Overall, Chevron Corp.'s fixed asset turnover has shown varying trends over the years, which could reflect changes in the company's operational efficiency and asset utilization strategies. It is essential for investors and stakeholders to closely monitor these trends to assess the company's performance and make informed decisions.
Peer comparison
Dec 31, 2023