Patterson-UTI Energy Inc (PTEN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,096,500 | 2,619,410 | 1,316,530 | 1,090,150 | 2,385,360 |
| Property, plant and equipment | US$ in thousands | 3,340,410 | 2,260,580 | 2,331,760 | 2,761,040 | 3,306,680 |
| Fixed asset turnover | 1.23 | 1.16 | 0.56 | 0.39 | 0.72 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,096,500K ÷ $3,340,410K
= 1.23
Fixed asset turnover is a financial ratio used to assess how efficiently a company is utilizing its fixed assets to generate revenue. Patterson-UTI Energy Inc's fixed asset turnover has been fluctuating over the past five years. The ratio increased consistently from 2019 to 2023, indicating an improvement in the company's ability to generate revenue from its fixed assets.
In 2020, the fixed asset turnover was notably low at 0.41, suggesting inefficient utilization of fixed assets to generate revenue. However, the ratio rebounded in subsequent years, reaching 1.24 in 2023. This increase signifies that Patterson-UTI Energy Inc has been more effective in generating revenue from its fixed assets.
Overall, the rising trend in fixed asset turnover demonstrates that the company has been making better use of its fixed assets to drive revenue growth. Investors and stakeholders may view this positively as it reflects improved operational efficiency and potentially higher profitability in the long term.
Peer comparison
Dec 31, 2023