Permian Resources Corporation (PR)

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	3,057,913	2,469,675	2,605,710	2,421,325	1,991,938	1,668,516	1,195,238	912,722	831,791	599,221	499,783	546,233	590,570	724,432	810,256	855,473	885,921	861,059	864,502	861,091
Property, plant and equipment	US$ in thousands	43,647	39,271	38,731	16,294	15,173	14,837	13,167	11,774	11,197	11,544	11,836	12,161	12,650	13,319	13,765	14,240	14,612	14,799	11,580	9,861
Fixed asset turnover		70.06	62.89	67.28	148.60	131.28	112.46	90.78	77.52	74.29	51.91	42.23	44.92	46.69	54.39	58.86	60.08	60.63	58.18	74.65	87.32

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,057,913K ÷ $43,647K
= 70.06

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its investments in fixed assets. Higher fixed asset turnover ratios indicate that the company is utilizing its fixed assets more effectively to generate sales.

In the case of Permian Resources Corp, the fixed asset turnover ratio has exhibited some fluctuations over the past eight quarters, ranging from 0.21 to 0.38. This suggests varying levels of efficiency in utilizing the company's fixed assets to generate revenue during these periods.

The trend shows some improvement in fixed asset turnover from Q4 2022 to Q2 2023, peaking at 0.38 in Q2 2022 before slightly declining in subsequent quarters. This indicates that Permian Resources Corp was able to generate more revenue per dollar of fixed assets during that period of higher turnover.

However, the latest ratio of 0.22 in Q4 2023 suggests a decline in the efficiency of utilizing fixed assets to generate revenue compared to the earlier quarters. It may indicate that the company needs to assess its asset utilization strategies and make improvements to enhance efficiency moving forward.