Diamondback Energy Inc (FANG)

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	8,412,000	8,214,000	8,311,000	9,160,000	9,643,000	9,635,000	9,108,000	8,021,000	6,797,000	5,544,000	4,354,000	3,098,000	2,813,000	3,148,000	3,403,000	3,999,000	3,964,000	3,493,000	3,055,000	2,561,000
Property, plant and equipment	US$ in thousands	26,674,000	25,365,000	25,145,000	25,514,000	23,759,000	21,903,000	21,369,000	21,108,000	20,619,000	20,406,000	20,419,000	20,352,000	16,214,000	17,435,000	18,927,000	21,420,000	21,835,000	22,043,000	21,603,000	21,047,000
Fixed asset turnover		0.32	0.32	0.33	0.36	0.41	0.44	0.43	0.38	0.33	0.27	0.21	0.15	0.17	0.18	0.18	0.19	0.18	0.16	0.14	0.12

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,412,000K ÷ $26,674,000K
= 0.32

Diamondback Energy Inc's fixed asset turnover has been declining gradually over the past eight quarters, from 0.44 in Q3 2022 to 0.31 in Q4 2023. This indicates that the company's efficiency in generating sales revenue from its fixed assets has decreased over time. A lower fixed asset turnover ratio could suggest inefficiencies in asset utilization or a decrease in sales relative to the investment in fixed assets. It would be advisable for the company to closely monitor and potentially reevaluate its fixed asset management strategies to improve this ratio and enhance overall operational effectiveness.