Warrior Met Coal Inc (HCC)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,703,690 | 1,735,450 | 1,045,640 | 784,294 | 1,279,610 |
| Property, plant and equipment | US$ in thousands | 1,112,600 | 669,351 | 527,720 | 590,362 | 565,973 |
| Fixed asset turnover | 1.53 | 2.59 | 1.98 | 1.33 | 2.26 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,703,690K ÷ $1,112,600K
= 1.53
Warrior Met Coal Inc's fixed asset turnover ratio has shown some fluctuation over the past five years. The ratio was 1.33 in 2023, which indicates that the company generated $1.33 in sales revenue for every dollar invested in fixed assets during the year. This is a decrease from the previous year's ratio of 2.10.
In 2022, the company had a relatively high fixed asset turnover ratio of 2.10, indicating a more efficient utilization of fixed assets to generate revenue compared to 2023. However, in 2021, the ratio decreased to 1.52, signaling a slight decline in the company's efficiency in utilizing its fixed assets to generate sales.
The lowest fixed asset turnover ratio in the past five years was recorded in 2020 at 1.06, suggesting a potential inefficiency in the utilization of fixed assets to generate revenue during that year. However, the ratio improved in 2019 to 1.77, indicating a better utilization of fixed assets compared to the following years.
Overall, the fluctuation in Warrior Met Coal Inc's fixed asset turnover ratio over the past five years indicates varying levels of efficiency in generating sales revenue from its fixed assets. It is crucial for the company to closely monitor and potentially improve its utilization of fixed assets to enhance overall financial performance.
Peer comparison
Dec 31, 2023