Southwestern Energy Company (SWN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,794,000 | 9,545,000 | 4,002,000 | 2,473,000 | 3,255,000 |
| Property, plant and equipment | US$ in thousands | 9,913,000 | 10,903,000 | 9,938,000 | 4,111,000 | 5,267,000 |
| Fixed asset turnover | 0.89 | 0.88 | 0.40 | 0.60 | 0.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,794,000K ÷ $9,913,000K
= 0.89
Southwestern Energy Company's fixed asset turnover has shown fluctuations over the past five years. In 2023, the fixed asset turnover ratio was 0.66, indicating that the company generated $0.66 in revenue for every dollar invested in fixed assets. This represents a significant decrease from the previous year's ratio of 1.38.
The decline in fixed asset turnover from 2022 to 2023 suggests that the company may not be efficiently utilizing its fixed assets to generate revenue. It is important for the company to assess and address the reasons behind this decrease in order to improve its operational efficiency and profitability.
Compared to the ratios in 2021, 2020, and 2019, the fixed asset turnover in 2023 is closer to the ratios reported in 2021 (0.67), 2020 (0.56), and 2019 (0.58). This indicates that the company's performance in 2023 in terms of generating revenue from its fixed assets was more aligned with the trend observed in the earlier years.
Overall, the trend in Southwestern Energy Company's fixed asset turnover suggests the need for closer monitoring and potential operational improvements to enhance the efficiency of utilizing fixed assets for revenue generation.
Peer comparison
Dec 31, 2023