RPC Inc (RES)

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	1,627,895	1,715,915	1,844,822	1,803,105	1,610,973	1,397,875	1,163,741	978,423	874,713	753,085	646,296	546,954	607,765	693,795	865,222	1,132,284	1,560,510	2,076,983	2,665,602	3,243,666
Property, plant and equipment	US$ in thousands	435,139	436,336	387,988	375,461	333,093	312,596	269,521	257,137	254,408	253,095	251,396	257,309	264,411	275,124	278,358	295,262	516,727	528,925	574,858	537,289
Fixed asset turnover		3.74	3.93	4.75	4.80	4.84	4.47	4.32	3.81	3.44	2.98	2.57	2.13	2.30	2.52	3.11	3.83	3.02	3.93	4.64	6.04

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,627,895K ÷ $435,139K
= 3.74

The fixed asset turnover ratio measures 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.

Analyzing the fixed asset turnover ratio of RPC, Inc. over the past eight quarters, we can observe fluctuations in the ratio. In Q1 2023, the fixed asset turnover ratio was 4.78, which was slightly higher than the previous quarter but lower than the peak of 4.81 in Q4 2022. This suggests that RPC, Inc. was able to generate more revenue relative to its fixed assets in Q1 2023.

The trend for the fixed asset turnover ratio has generally been positive over the past two years, with the ratio increasing from 3.76 in Q1 2022 to a peak of 4.81 in Q4 2022 before showing some variability in the most recent quarters.

Overall, RPC, Inc. has shown a consistent ability to efficiently utilize its fixed assets to generate revenue, with fluctuations in the ratio potentially influenced by various factors such as changes in sales volume, asset utilization, or asset base. Monitoring the fixed asset turnover ratio over time can provide insights into the company's operational efficiency and asset management capabilities.