Warrior Met Coal Inc (HCC)
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 | 1,703,690 | 1,643,400 | 1,621,481 | 1,866,718 | 1,722,254 | 1,783,131 | 1,595,163 | 1,197,238 | 1,045,656 | 853,009 | 831,310 | 768,151 | 783,157 | 775,805 | 888,048 | 1,139,650 | 1,280,144 | 1,435,603 | 1,416,915 | 1,324,709 |
| Property, plant and equipment | US$ in thousands | 1,112,600 | 938,189 | 846,188 | 724,372 | 669,351 | 606,210 | 584,856 | 533,216 | 527,720 | 528,913 | 547,163 | 562,811 | 590,362 | 563,524 | 562,915 | 559,106 | 565,973 | 590,224 | 582,560 | 578,662 |
| Fixed asset turnover | 1.53 | 1.75 | 1.92 | 2.58 | 2.57 | 2.94 | 2.73 | 2.25 | 1.98 | 1.61 | 1.52 | 1.36 | 1.33 | 1.38 | 1.58 | 2.04 | 2.26 | 2.43 | 2.43 | 2.29 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,703,690K ÷ $1,112,600K
= 1.53
Warrior Met Coal Inc's fixed asset turnover has exhibited variability over the past eight quarters, ranging from a low of 1.33 in Q4 2023 to a high of 2.36 in Q3 2022. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets. A higher ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
The trend in Warrior Met Coal Inc's fixed asset turnover ratio shows a general decline from Q3 2022 to Q4 2023, which may suggest a decrease in the efficiency of utilizing its fixed assets to generate revenue during this period. Particularly noteworthy is the significant drop in Q1 2023 where the ratio fell to 2.12 from 1.62 in the previous quarter.
It is essential for the company to closely monitor and analyze the factors contributing to these fluctuations in fixed asset turnover to ensure optimal utilization of its fixed assets and enhance overall operational efficiency. Further investigation into the underlying reasons behind the changes in the ratio can provide insights for management to make strategic decisions regarding investment in fixed assets and improve the company's long-term financial performance.
Peer comparison
Dec 31, 2023