Patterson-UTI Energy Inc (PTEN)
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 | 4,096,384 | 3,310,459 | 3,031,160 | 2,893,593 | 2,609,966 | 2,279,773 | 1,910,447 | 1,579,937 | 1,311,774 | 1,080,833 | 929,484 | 887,810 | 1,091,992 | 1,363,488 | 1,745,348 | 2,168,419 | 2,430,209 | 2,733,849 | 3,011,238 | 3,190,522 |
| Property, plant and equipment | US$ in thousands | 3,340,410 | 3,388,000 | 2,263,580 | 2,253,470 | 2,260,580 | 2,278,640 | 2,289,370 | 2,305,530 | 2,331,760 | 2,424,720 | 2,511,980 | 2,627,910 | 2,761,040 | 2,893,170 | 3,033,830 | 3,187,160 | 3,306,680 | 3,433,500 | 3,769,260 | 3,898,520 |
| Fixed asset turnover | 1.23 | 0.98 | 1.34 | 1.28 | 1.15 | 1.00 | 0.83 | 0.69 | 0.56 | 0.45 | 0.37 | 0.34 | 0.40 | 0.47 | 0.58 | 0.68 | 0.73 | 0.80 | 0.80 | 0.82 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,096,384K ÷ $3,340,410K
= 1.23
The fixed asset turnover ratio is a measure of how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of fixed assets.
Looking at the data provided for Patterson-UTI Energy Inc over the past eight quarters, we can see fluctuations in the fixed asset turnover ratio. In Q4 2023, the fixed asset turnover ratio was 1.24, which was higher compared to the previous quarter. This indicates that the company was able to generate more revenue relative to its fixed assets in Q4 2023.
On a year-over-year basis, there has been an overall increasing trend in the fixed asset turnover ratio for Patterson-UTI Energy Inc. In Q4 2022, the ratio was 1.17, and it has been gradually increasing since then, reaching a peak of 1.35 in Q2 2023.
The peak in Q2 2023 could be attributed to improved operational efficiency and effective utilization of fixed assets during that period. However, the ratio dipped slightly in Q3 and then picked up again in Q4 2023.
Overall, based on the trend observed in the fixed asset turnover ratio for Patterson-UTI Energy Inc, it appears that the company has been efficiently using its fixed assets to generate revenue, with some fluctuations seen in the short term. Monitoring this ratio over time can provide insights into the company's operational efficiency and asset utilization strategies.
Peer comparison
Dec 31, 2023