Frontier Communications Parent Inc (FYBR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,751,000 | 5,787,000 | 6,411,000 | 7,155,000 | 8,107,000 |
| Property, plant and equipment | US$ in thousands | 13,933,000 | 11,850,000 | 9,199,000 | 12,931,000 | 12,963,000 |
| Fixed asset turnover | 0.41 | 0.49 | 0.70 | 0.55 | 0.63 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,751,000K ÷ $13,933,000K
= 0.41
Frontier Communications Parent Inc's fixed asset turnover ratio has exhibited fluctuations over the past five years. The ratio declined from 0.63 in 2019 to 0.55 in 2020, indicating that the company generated less revenue per dollar of fixed assets during that period. However, there was a noticeable increase in 2021 when the ratio rose to 0.70, suggesting improved efficiency in utilizing fixed assets to generate sales.
Despite the improvement in 2021, the fixed asset turnover ratio decreased again in 2022 to 0.49 and further dropped to 0.41 in 2023. These declines indicate a potential inefficiency in utilizing fixed assets to generate revenue in those years. It could imply underutilization of assets or possibly a decline in sales relative to the book value of fixed assets.
Overall, the trend in Frontier Communications Parent Inc's fixed asset turnover ratio suggests fluctuations in the company's ability to efficiently utilize its fixed assets to generate sales revenue. Further analysis would be necessary to understand the specific reasons behind these fluctuations and to identify potential areas for improvement in asset management and revenue generation.
Peer comparison
Dec 31, 2023