RPC Inc (RES)

Total 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
Total assets	US$ in thousands	1,286,840	1,129,010	864,365	790,505	1,053,220
Total asset turnover		1.27	1.43	1.01	0.77	1.16

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,627,900K ÷ $1,286,840K
= 1.27

Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. A higher total asset turnover indicates that the company is able to generate more revenue per dollar of assets. In the case of RPC, Inc., there has been some variability in the total asset turnover ratio over the past five years.

In 2023, the total asset turnover ratio was 1.26, indicating that RPC generated $1.26 in revenue for every $1 in assets. This was a decrease from the previous year, where the ratio was 1.42. Despite the slight decrease, RPC still showed efficient utilization of its assets to generate revenue compared to 2020 when the ratio was 0.76.

Looking further back, in 2021, the total asset turnover ratio was 1.00, indicating that RPC generated revenue equal to its total assets. This suggests that the company efficiently utilized its assets to generate revenue in that year. The ratio improved in 2019 when it was 1.16, showing higher asset efficiency compared to 2020 and 2023.

In conclusion, while there have been fluctuations in RPC's total asset turnover ratio over the years, the company generally shows a decent level of asset efficiency in generating revenue. However, the recent decrease in the ratio from 2022 to 2023 may warrant further investigation into the company's asset management strategies.