Warrior Met Coal Inc (HCC)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,525,220 | 1,703,690 | 1,735,450 | 1,045,640 | 784,294 |
| Property, plant and equipment | US$ in thousands | 1,492,770 | 1,112,600 | 669,351 | 527,720 | 590,362 |
| Fixed asset turnover | 1.02 | 1.53 | 2.59 | 1.98 | 1.33 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,525,220K ÷ $1,492,770K
= 1.02
Warrior Met Coal Inc's fixed asset turnover has shown varying trends over the years, reflecting the company's efficiency in generating sales from its investment in fixed assets.
In 2020, the fixed asset turnover ratio was 1.33, indicating that the company generated $1.33 in sales for every dollar invested in fixed assets. The ratio improved significantly in 2021 to 1.98, signaling that the company became more efficient in utilizing its fixed assets to generate revenue.
By the end of 2022, Warrior Met Coal Inc further enhanced its operational efficiency, as evidenced by a fixed asset turnover ratio of 2.59. This suggests that the company generated $2.59 in sales for every dollar invested in fixed assets, demonstrating a commendable utilization of its asset base.
However, there was a slight decline in the fixed asset turnover ratio in 2023 to 1.53, indicating a potential decrease in efficiency in generating sales compared to the previous year. The decline may raise concerns about the company's operational effectiveness in utilizing its fixed assets.
Moreover, in 2024, Warrior Met Coal Inc experienced a significant drop in the fixed asset turnover ratio to 1.02. This decline suggests that the company generated only $1.02 in sales for every dollar invested in fixed assets, indicating a potential efficiency challenge in utilizing its fixed asset base efficiently during that period.
Overall, the fluctuating trend in Warrior Met Coal Inc's fixed asset turnover ratios highlights the importance of closely monitoring and evaluating the company's efficiency in generating revenue from its fixed assets to ensure optimal operational performance.
Peer comparison
Dec 31, 2024