Newmont Goldcorp Corp (NEM)
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 | 11,635,000 | 10,897,000 | 11,038,000 | 11,451,000 | 11,807,000 | 12,044,000 | 12,312,000 | 12,300,000 | 12,171,000 | 12,135,000 | 12,371,000 | 11,608,000 | 11,286,000 | 10,998,000 | 10,564,000 | 10,515,000 | 9,743,000 | 8,824,000 | 7,852,000 | 7,267,000 |
| Property, plant and equipment | US$ in thousands | 37,032,000 | 24,474,000 | 24,284,000 | 24,097,000 | 24,073,000 | 24,150,000 | 24,131,000 | 24,070,000 | 24,124,000 | 23,711,000 | 24,500,000 | 24,081,000 | 24,281,000 | 24,333,000 | 24,676,000 | 24,952,000 | 25,276,000 | 26,197,000 | 23,377,000 | 12,264,000 |
| Fixed asset turnover | 0.31 | 0.45 | 0.45 | 0.48 | 0.49 | 0.50 | 0.51 | 0.51 | 0.50 | 0.51 | 0.50 | 0.48 | 0.46 | 0.45 | 0.43 | 0.42 | 0.39 | 0.34 | 0.34 | 0.59 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,635,000K ÷ $37,032,000K
= 0.31
The fixed asset turnover ratio for Newmont Corp has been fluctuating over the past eight quarters. The ratio has shown a decreasing trend from Q4 2022 to Q4 2023, indicating a decline in the company's ability to generate revenue from its fixed assets efficiently.
The ratio of 0.31 in Q4 2023 suggests that for every dollar invested in fixed assets, Newmont Corp generated $0.31 in revenue. This reflects a decrease in efficiency compared to the ratio of 0.49 in Q4 2022.
Although there was a slight improvement in Q3 and Q2 2023, with ratios of 0.45 and 0.46 respectively, the overall trend remains on a downward trajectory. This decline may indicate inefficiencies in asset utilization, potential over-investment in fixed assets, or challenges in revenue generation from these assets.
It is important for Newmont Corp to monitor and address the factors contributing to this decrease in fixed asset turnover to enhance operational efficiency and profitability in the long term. Further analysis of the company's asset management strategies and revenue generation capabilities may be required to improve this ratio.
See also:
Newmont Goldcorp Corp Net Fixed Asset Turnover (Quarterly Data)