Dril-Quip Inc (DRQ)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 424,060 | 361,924 | 322,945 | 364,973 | 414,806 |
| Property, plant and equipment | US$ in thousands | 217,631 | 181,270 | 216,200 | 234,823 | 258,497 |
| Fixed asset turnover | 1.95 | 2.00 | 1.49 | 1.55 | 1.60 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $424,060K ÷ $217,631K
= 1.95
The fixed asset turnover ratio for Dril-Quip, Inc. has shown some fluctuations over the past five years. In 2023, the ratio decreased to 1.95 from 2.00 in 2022. This indicates that the company generated $1.95 in revenue for every dollar invested in fixed assets during 2023.
Comparing to previous years, the 2023 ratio is lower than the ratios seen in 2020, 2019, and 2018, suggesting a decrease in efficiency in utilizing fixed assets to generate sales. However, the 2023 ratio is higher than in 2021, indicating some improvement in asset utilization efficiency compared to that particular year.
Overall, the trend of the fixed asset turnover ratio for Dril-Quip, Inc. has been somewhat fluctuating, and it would be beneficial for the company to continue monitoring and managing its fixed assets effectively to improve productivity and profitability in the future.
Peer comparison
Dec 31, 2023