Range Resources Corp (RRC)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,374,420	4,146,800	2,930,220	1,968,700	2,827,620
Property, plant and equipment	US$ in thousands	1,696	2,434	3,494	4,161	5,375
Fixed asset turnover		1,989.63	1,703.70	838.64	473.13	526.07

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,374,420K ÷ $1,696K
= 1,989.63

Range Resources Corp's fixed asset turnover has varied over the past five years, ranging from 0.35 to 0.70. The ratio measures the company's ability to generate sales revenue in relation to its investment in fixed assets. A higher fixed asset turnover ratio generally indicates more efficient utilization of fixed assets to generate sales.

In 2023, the fixed asset turnover ratio decreased to 0.55 from 0.70 in 2022. This indicates that Range Resources Corp generated $0.55 in sales for every dollar invested in fixed assets in 2023, down from $0.70 in the previous year. The decrease in the ratio could suggest either a decrease in sales revenue generated from fixed assets or an increase in the investment in fixed assets without a proportionate increase in sales.

Comparing the 2023 ratio to 2021 and 2020, where it was 0.51 and 0.35 respectively, the current ratio shows an improvement in the utilization of fixed assets. However, it is still below the 0.70 ratio recorded in 2022. The company may need to evaluate its asset utilization strategies to improve efficiency and increase sales generated from fixed assets.

Overall, while the 2023 fixed asset turnover ratio for Range Resources Corp decreased from the previous year, it still indicates moderate efficiency in generating sales from its investment in fixed assets. Further analysis and comparison with industry benchmarks may provide additional insights into the company's asset management effectiveness.