Devon Energy Corporation (DVN)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	15,940,000	15,682,000	15,494,000	15,031,000	15,258,000	15,412,000	17,008,000	19,180,000	19,169,000	19,143,000	17,177,000	13,968,000	12,206,000	9,213,000	6,814,000	4,791,000	4,828,000	5,137,000	5,816,000	7,228,000
Property, plant and equipment	US$ in thousands	25,011,000	24,950,000	19,785,000	19,584,000	19,328,000	19,031,000	18,763,000	18,515,000	18,106,000	17,793,000	15,113,000	15,074,000	15,008,000	15,078,000	15,189,000	15,274,000	5,393,000	5,556,000	5,686,000	5,780,000
Fixed asset turnover		0.64	0.63	0.78	0.77	0.79	0.81	0.91	1.04	1.06	1.08	1.14	0.93	0.81	0.61	0.45	0.31	0.90	0.92	1.02	1.25

December 31, 2024 calculation

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

The fixed asset turnover for Devon Energy Corporation has shown fluctuations over the past few years, indicating changes in the efficiency of utilizing fixed assets to generate revenue. The ratio decreased from 1.25 as of March 31, 2020, to a low of 0.31 as of March 31, 2021, signaling a decline in asset utilization efficiency during that period.

However, there was a gradual improvement in the fixed asset turnover ratio from March 31, 2021, reaching a peak of 1.14 as of June 30, 2022. This indicates the company became more efficient in generating revenue from its fixed assets during this period.

Subsequently, the fixed asset turnover ratio showed some volatility but generally remained within a range between 0.63 and 1.06 through December 31, 2024. This suggests that Devon Energy Corporation was able to maintain a moderate level of efficiency in utilizing its fixed assets to generate sales during this period, despite some fluctuations.

Overall, it is important for the company to continue monitoring and managing its fixed asset turnover to ensure optimal utilization of assets to drive revenue generation and improve overall financial performance.