Liberty Oilfield Services Inc (LBRT)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,747,930 | 4,149,230 | 2,470,780 | 965,787 | 1,990,350 |
| Total assets | US$ in thousands | 3,033,560 | 2,575,930 | 2,040,660 | 1,889,940 | 1,283,430 |
| Total asset turnover | 1.57 | 1.61 | 1.21 | 0.51 | 1.55 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,747,930K ÷ $3,033,560K
= 1.57
Total asset turnover measures a company's ability to generate sales revenue from its total assets. In the case of Liberty Energy Inc, the total asset turnover has fluctuated over the past five years.
In 2023, the total asset turnover was 1.57, which indicates that for every dollar of total assets, Liberty Energy generated $1.57 of sales revenue. This represents a slight decrease from the previous year's ratio of 1.61 in 2022.
The ratio was notably lower in 2021 at 1.21, suggesting that the company was less efficient in utilizing its assets to generate revenue during that period. However, there was a significant improvement in 2020 with a total asset turnover of 0.51, indicating a more efficient use of assets compared to the previous year.
Looking back to 2019, the total asset turnover was 1.55, showing a strong performance in asset utilization that year. Overall, fluctuations in total asset turnover can be attributed to changes in the company's sales revenue relative to its total assets and highlight Liberty Energy Inc's varying efficiency in asset management over the years.
Peer comparison
Dec 31, 2023