Southwestern Energy Company (SWN)

Total 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
Total assets	US$ in thousands	11,991,000	12,926,000	11,848,000	5,160,000	6,717,000
Total asset turnover		0.73	0.74	0.34	0.48	0.48

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $8,794,000K ÷ $11,991,000K
= 0.73

The total asset turnover ratio of Southwestern Energy Company has fluctuated over the past five years. In 2023, the total asset turnover ratio was 0.54, indicating that the company generated $0.54 in revenues for every $1 of total assets during the year. This figure represents a significant decrease from the previous year's ratio of 1.16.

The sharp decline in total asset turnover from 2022 to 2023 suggests a potential inefficiency in utilizing assets to generate revenues. It could imply that the company's asset management and utilization strategies were not as effective in the most recent year. Further investigation into the company's operations and financial performance may be warranted to understand the underlying factors contributing to this decline.

Comparing the 2023 ratio to the ratios of 2021, 2020, and 2019, it is evident that the company's total asset turnover has been volatile over the period, with ratios ranging from 0.45 to 1.16. This variability may indicate fluctuations in the company's revenue generation efficiency and asset utilization practices over the years.

In conclusion, the decreasing trend in Southwestern Energy Company's total asset turnover ratio from 2022 to 2023 raises concerns about the company's ability to effectively generate revenues relative to its total asset base. Monitoring future financial performance and potential operational improvements will be crucial to address this aspect of the company's performance.