EOG Resources Inc (EOG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 24,186,000 | 25,702,000 | 18,642,000 | 11,032,000 | 17,380,000 |
| Property, plant and equipment | US$ in thousands | 32,297,000 | 29,429,000 | 28,426,000 | 28,599,000 | 30,364,000 |
| Fixed asset turnover | 0.75 | 0.87 | 0.66 | 0.39 | 0.57 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $24,186,000K ÷ $32,297,000K
= 0.75
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates better asset utilization.
EOG Resources, Inc.'s fixed asset turnover has fluctuated over the past five years, ranging from 0.39 to 0.87. In 2023, the fixed asset turnover ratio decreased to 0.75 from 0.87 in 2022. This decline may suggest a decrease in efficiency in utilizing fixed assets to generate revenue.
It is important to note that fixed asset turnover ratios can vary significantly across industries due to differences in capital intensity. Therefore, it is advisable to compare EOG Resources' fixed asset turnover ratio to that of its industry peers for a more meaningful analysis.
Overall, EOG Resources, Inc. should monitor its fixed asset turnover ratio closely to ensure optimal utilization of its fixed assets and efficient revenue generation.
Peer comparison
Dec 31, 2023