Dril-Quip Inc (DRQ)
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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 424,060 | 394,530 | 365,427 | 369,798 | 362,070 | 343,168 | 338,024 | 324,843 | 322,945 | 332,267 | 340,565 | 350,214 | 364,973 | 386,193 | 403,125 | 416,487 | 414,806 | 403,687 | 388,717 | 379,770 |
| Property, plant and equipment | US$ in thousands | 217,631 | 211,806 | 185,894 | 183,285 | 181,270 | 181,359 | 179,938 | 212,944 | 216,200 | 224,676 | 229,247 | 231,385 | 234,823 | 239,591 | 243,796 | 244,495 | 258,497 | 259,423 | 265,591 | 270,424 |
| Fixed asset turnover | 1.95 | 1.86 | 1.97 | 2.02 | 2.00 | 1.89 | 1.88 | 1.53 | 1.49 | 1.48 | 1.49 | 1.51 | 1.55 | 1.61 | 1.65 | 1.70 | 1.60 | 1.56 | 1.46 | 1.40 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $424,060K ÷ $217,631K
= 1.95
Dril-Quip, Inc.'s fixed asset turnover ratio has fluctuated over the past eight quarters. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio generally signifies better asset utilization.
In Q1 2022, the fixed asset turnover ratio was at its lowest point of 1.53, indicating that Dril-Quip was generating $1.53 in sales for every dollar invested in fixed assets during that quarter. Subsequently, the ratio increased in the following quarters, reaching its peak in Q1 2023 at 2.02. This could suggest that the company improved its efficiency in utilizing fixed assets to generate revenue.
However, the ratio has since declined slightly in the most recent quarters, with Q4 2023 showing a fixed asset turnover of 1.95. While the trend is not consistent, it is worth noting that Dril-Quip's fixed asset turnover has remained above 1.5 throughout the period under review, indicating a relatively healthy level of asset efficiency.
Overall, despite some fluctuations, Dril-Quip, Inc. has generally shown reasonable effectiveness in using its fixed assets to generate revenue over the past eight quarters. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset utilization efficiency.
Peer comparison
Dec 31, 2023