Cactus Inc (WHD)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,090,880 | 692,436 | 438,080 | 349,742 | 629,748 |
| Property, plant and equipment | US$ in thousands | 345,502 | 129,998 | 129,117 | 142,825 | 161,748 |
| Fixed asset turnover | 3.16 | 5.33 | 3.39 | 2.45 | 3.89 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,090,880K ÷ $345,502K
= 3.16
Fixed asset turnover is a financial ratio used to measure how efficiently a company is utilizing its fixed assets to generate sales revenue. A higher fixed asset turnover ratio indicates that a company is generating more sales revenue per dollar of fixed assets.
In the case of Cactus Inc, the fixed asset turnover has fluctuated over the past five years. In 2023, the fixed asset turnover was 3.16, a significant decrease from the previous year's ratio of 5.33. This suggests that in 2023, Cactus Inc generated $3.16 in sales revenue for every dollar of fixed assets.
The significant decrease in fixed asset turnover from 2022 to 2023 may indicate that Cactus Inc was less efficient in utilizing its fixed assets to generate sales revenue during that period. Further analysis would be needed to understand the reasons behind this decline and to identify opportunities for improvement in asset utilization.
Overall, it is essential for Cactus Inc to closely monitor its fixed asset turnover ratio to ensure efficient utilization of fixed assets and maximize sales revenue generation.
Peer comparison
Dec 31, 2023