Patterson-UTI Energy Inc (PTEN)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 5,377,910 | 5,800,090 | 5,454,320 | 4,865,015 | 4,146,457 | 3,344,072 | 3,049,150 | 2,901,845 | 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 |
| Property, plant and equipment | US$ in thousands | 3,010,340 | 3,095,070 | 3,236,060 | 3,319,340 | 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 |
| Fixed asset turnover | 1.79 | 1.87 | 1.69 | 1.47 | 1.24 | 0.99 | 1.35 | 1.29 | 1.15 | 1.00 | 0.83 | 0.69 | 0.56 | 0.45 | 0.37 | 0.34 | 0.40 | 0.47 | 0.58 | 0.68 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $5,377,910K ÷ $3,010,340K
= 1.79
The fixed asset turnover ratio measures a company's ability to generate revenues relative to its investment in fixed assets. For Patterson-UTI Energy Inc, the fixed asset turnover has shown fluctuations over the past few years.
From the data provided, the fixed asset turnover ratio has gradually increased from 0.68 as of March 31, 2020, to 1.79 as of December 31, 2024. This indicates that the company is generating significantly more revenue per dollar invested in fixed assets.
The trend in fixed asset turnover shows some volatility, with fluctuations observed in the interim periods. Notably, there was a dip in the ratio in the latter part of 2022 and early 2023, followed by a recovery and steady increase since then.
Overall, the increasing trend in fixed asset turnover for Patterson-UTI Energy Inc suggests improvements in operational efficiency and better utilization of fixed assets to generate sales. However, periodic fluctuations in the ratio may indicate varying levels of asset efficiency and revenue generation. Additional analysis incorporating other financial metrics and industry benchmarks would provide a more comprehensive assessment of the company's performance in utilizing its fixed assets.
Peer comparison
Dec 31, 2024