RPC Inc (RES)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,627,900	1,610,970	874,713	607,747	1,225,850
Property, plant and equipment	US$ in thousands	435,139	333,093	254,408	264,411	516,727
Fixed asset turnover		3.74	4.84	3.44	2.30	2.37

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,627,900K ÷ $435,139K
= 3.74

The fixed asset turnover ratio for RPC, Inc. has displayed fluctuating trends over the past five years. In 2023, the ratio stands at 3.72, indicating that the company generated $3.72 in net sales revenue for every dollar invested in fixed assets. This represents a decrease from the previous year's ratio of 4.81, suggesting a potential inefficiency in utilizing fixed assets to generate revenue. However, the 2023 ratio is higher than the ratios in 2021, 2020, and 2019, indicating an improvement in asset utilization efficiency over those years. Overall, RPC, Inc. should continue to monitor and assess its fixed asset management strategies to enhance operational efficiency and profitability.