Devon Energy Corporation (DVN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 15,258,000 | 19,169,000 | 12,206,000 | 4,828,000 | 6,220,000 |
| Property, plant and equipment | US$ in thousands | 19,328,000 | 18,106,000 | 15,008,000 | 5,393,000 | 8,593,000 |
| Fixed asset turnover | 0.79 | 1.06 | 0.81 | 0.90 | 0.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,258,000K ÷ $19,328,000K
= 0.79
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate revenue.
Looking at the data provided for Devon Energy Corp., we can see that the fixed asset turnover ratios have fluctuated over the past five years. In 2023, the fixed asset turnover ratio was 0.79, which is lower than the previous year's ratio of 1.06.
The decreasing trend in the fixed asset turnover ratio from 2022 to 2023 suggests that Devon Energy Corp. may not be effectively utilizing its fixed assets to generate revenue. This could be indicative of inefficiencies in asset management or a decline in revenue relative to the level of fixed assets in the company.
Further analysis of the company's operations and financial performance is necessary to understand the factors contributing to the fluctuation in the fixed asset turnover ratio and to assess the overall efficiency of Devon Energy Corp.'s asset utilization.
Peer comparison
Dec 31, 2023