EQT Corporation (EQT)

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	6,908,920	8,345,750	9,229,110	10,737,870	10,563,420	10,923,280	10,637,870	9,188,260	7,651,563	5,064,453	3,452,530	2,901,704	3,058,841	2,817,741	3,597,190	4,380,366	4,416,476	4,650,136	4,748,610	4,389,008
Property, plant and equipment	US$ in thousands	22,950,200	22,922,100	18,323,500	18,233,700	18,167,300	18,132,200	18,202,100	18,295,900	18,418,900	18,781,100	15,819,100	15,898,000	16,054,300	15,557,400	15,704,100	15,965,500	16,155,500	17,570,000	17,505,700	17,453,200
Fixed asset turnover		0.30	0.36	0.50	0.59	0.58	0.60	0.58	0.50	0.42	0.27	0.22	0.18	0.19	0.18	0.23	0.27	0.27	0.26	0.27	0.25

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,908,920K ÷ $22,950,200K
= 0.30

The fixed asset turnover ratio for EQT Corp has exhibited significant fluctuations over the past eight quarters. The ratio dropped to a low of 0.07 in Q3 2023, indicating that the company generated only $0.07 in revenue for every dollar invested in fixed assets during that period. This was a notable decline from the previous quarter and reflected potentially inefficient utilization of fixed assets.

In contrast, Q4 2022 saw a relatively higher fixed asset turnover of 0.41, indicating an improvement in efficiency compared to the subsequent quarters. However, this ratio has been on a declining trend overall since Q2 2022, where it peaked at 0.56. This decrease suggests a potential decrease in revenue generation relative to the investment in fixed assets.

The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in utilizing assets to generate sales. The fluctuating nature of EQT Corp's fixed asset turnover ratio signifies variability in the company's operational efficiency and effectiveness in utilizing its fixed assets to generate revenue over the analyzed period.