HF Sinclair Corp (DINO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 31,780,330 | 32,993,160 | 34,745,460 | 38,104,440 | 38,041,410 | |||
| Property, plant and equipment | US$ in thousands | 6,543,360 | 6,580,020 | 6,627,820 | 6,656,320 | 6,628,880 | 6,733,030 | 6,768,580 | 6,844,840 |
| Fixed asset turnover | 4.86 | 5.01 | 5.24 | 5.72 | 5.74 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $31,780,330K ÷ $6,543,360K
= 4.86
Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Looking at the data provided for HF Sinclair Corp., the fixed asset turnover ratio has been increasing steadily over the past eight quarters. From Q1 2022 to Q4 2023, the ratio has shown a positive trend, starting at 3.26 and reaching a peak of 5.76. This suggests that the company is improving its efficiency in using its fixed assets to generate sales revenue.
The highest fixed asset turnover ratio was recorded in Q1 2023 at 5.76, indicating that for every dollar invested in fixed assets, the company generated $5.76 in sales revenue during that quarter. This demonstrates the company's ability to effectively utilize its fixed assets to drive revenue growth.
Overall, the increasing trend in the fixed asset turnover ratio for HF Sinclair Corp. indicates improving efficiency in utilizing fixed assets to generate sales, which is a positive indication of the company's operational effectiveness and financial health.