Liberty Oilfield Services Inc (LBRT)

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	4,747,930	4,898,560	4,870,910	4,618,539	4,149,229	3,607,374	3,072,851	2,711,520	2,470,782	2,044,633	1,538,401	1,045,475	965,787	1,106,172	1,473,756	1,927,541	1,990,345	2,065,489	2,109,187	2,195,124
Property, plant and equipment	US$ in thousands	1,645,370	1,613,440	1,546,190	1,430,980	1,362,360	1,295,190	1,267,390	1,218,960	1,199,290	1,069,890	1,076,900	1,105,940	1,120,950	582,865	613,136	642,871	651,703	638,686	647,614	640,768
Fixed asset turnover		2.89	3.04	3.15	3.23	3.05	2.79	2.42	2.22	2.06	1.91	1.43	0.95	0.86	1.90	2.40	3.00	3.05	3.23	3.26	3.43

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,747,930K ÷ $1,645,370K
= 2.89

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its fixed assets. The higher the fixed asset turnover ratio, the better the company is utilizing its fixed assets to generate sales.

Based on the data provided for Liberty Energy Inc, the fixed asset turnover has shown a generally increasing trend over the past eight quarters. The ratio has improved from 2.22 in Q1 2022 to 3.23 in Q1 2023, indicating that the company has been more effective in generating revenue from its fixed assets.

The highest fixed asset turnover ratio was observed in Q1 2023 at 3.23, indicating that Liberty Energy Inc generated $3.23 in revenue for every $1 invested in fixed assets during that quarter. This suggests that the company has been able to efficiently utilize its fixed assets to drive sales growth.

Overall, the increasing trend in fixed asset turnover over the past quarters reflects positively on Liberty Energy Inc's operational efficiency and management of its fixed assets. It indicates that the company is making effective use of its investment in fixed assets to drive revenue growth.