Patterson-UTI Energy Inc (PTEN)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 5,377,910 | 4,146,460 | 2,619,410 | 1,316,530 | 1,090,150 |
| Property, plant and equipment | US$ in thousands | 3,010,340 | 3,340,410 | 2,260,580 | 2,331,760 | 2,761,040 |
| Fixed asset turnover | 1.79 | 1.24 | 1.16 | 0.56 | 0.39 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,377,910K ÷ $3,010,340K
= 1.79
The fixed asset turnover ratio for Patterson-UTI Energy Inc has shown a positive trend over the five-year period from 2020 to 2024. In 2020, the company had a fixed asset turnover of 0.39, indicating that it generated $0.39 in revenue for every dollar invested in fixed assets.
Subsequently, the ratio improved to 0.56 in 2021, 1.16 in 2022, 1.24 in 2023, and 1.79 in 2024. This upward trajectory suggests that Patterson-UTI Energy Inc has been more efficient in utilizing its fixed assets to generate revenue over the years.
The significant increase in fixed asset turnover from 2020 to 2024 indicates that the company has been able to enhance its operational efficiency and productivity in using its fixed assets to generate sales. This improvement could be attributed to better utilization of existing assets, enhanced asset management strategies, or increased revenue generation from the existing asset base. Overall, the upward trend in fixed asset turnover reflects positively on the company's ability to generate revenue from its fixed asset base and indicates improved efficiency in its operations.
Peer comparison
Dec 31, 2024