Devon Energy Corporation (DVN)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	15,940,000	15,258,000	19,169,000	12,206,000	4,828,000
Property, plant and equipment	US$ in thousands	25,011,000	19,328,000	18,106,000	15,008,000	5,393,000
Fixed asset turnover		0.64	0.79	1.06	0.81	0.90

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $15,940,000K ÷ $25,011,000K
= 0.64

Devon Energy Corporation's fixed asset turnover ratio fluctuated over the period analyzed. In 2020, the ratio was 0.90, indicating that Devon generated $0.90 in revenue for every dollar invested in fixed assets. The ratio decreased to 0.81 by the end of 2021, suggesting a decrease in efficiency in utilizing fixed assets to generate revenue.

However, there was a significant improvement in 2022, with the fixed asset turnover ratio increasing to 1.06, indicating that Devon was more efficient in utilizing its fixed assets to generate revenue. This improvement may result from better asset management or increased revenue generation.

By the end of 2023, the ratio declined to 0.79, signaling a decrease in efficiency compared to the previous year. Finally, in 2024, the fixed asset turnover ratio further decreased to 0.64, indicating a potential decline in Devon's ability to generate revenue using its fixed assets efficiently.

Overall, the fluctuations in Devon Energy Corporation's fixed asset turnover ratio over the years suggest varying levels of efficiency in utilizing fixed assets to generate revenue.