Permian Resources Corporation (PR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,057,910	1,991,940	831,791	590,570	885,921
Property, plant and equipment	US$ in thousands	43,647	15,173	11,197	12,650	14,612
Fixed asset turnover		70.06	131.28	74.29	46.69	60.63

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,057,910K ÷ $43,647K
= 70.06

Permian Resources Corp's fixed asset turnover ratio has fluctuated over the past five years, ranging from 0.16 to 0.28. This ratio indicates the company's ability to generate sales revenue from its investment in fixed assets such as property, plant, and equipment.

A decreasing trend in the fixed asset turnover ratio may suggest inefficiency in utilizing fixed assets to generate sales, while an increasing trend may indicate improved asset utilization.

In 2023, the fixed asset turnover ratio decreased to 0.22 from 0.27 in 2022. This decline could be attributed to either a decrease in sales revenue generated from fixed assets or an increase in the book value of fixed assets impacting the ratio negatively. Further analysis is needed to understand the factors driving this change.

Overall, Permian Resources Corp should closely monitor its fixed asset turnover ratio to ensure optimal utilization of fixed assets and maximize sales revenue efficiency going forward.