Permian Resources Corporation (PR)
Total 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 |
| Total assets | US$ in thousands | 14,965,600 | 8,492,590 | 3,804,590 | 3,827,420 | 4,688,290 |
| Total asset turnover | 0.20 | 0.23 | 0.22 | 0.15 | 0.19 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,057,910K ÷ $14,965,600K
= 0.20
Permian Resources Corp's total asset turnover has fluctuated over the past five years. The ratio peaked at 0.27 in 2021, indicating that the company generated $0.27 in revenue for every dollar of assets. This implies efficient utilization of assets to generate sales. However, the ratio decreased in 2022 and 2023 to 0.25 and 0.21 respectively, suggesting a decline in asset efficiency.
The significant drop in total asset turnover to 0.15 in 2020 is a cause for concern as it indicates a lower level of sales generated per dollar of assets invested. The company's ability to utilize its assets effectively to generate revenue was weaker in 2020.
In general, the trend in total asset turnover shows some variability, which could be a result of changes in business operations, asset management, or economic conditions. Permian Resources Corp may need to focus on optimizing its asset utilization to improve its overall financial performance.
Peer comparison
Dec 31, 2023