Cactus Inc (WHD)
Fixed asset turnover
| Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,136,594 | 1,090,876 | 1,013,935 | 910,546 | 774,942 | 692,436 | 630,002 | 560,884 | 499,562 | 438,080 | 377,939 | 322,365 | 280,020 | 349,742 | 420,714 | 521,621 | 623,460 | 625,996 | 625,582 | 615,274 |
| Property, plant and equipment | US$ in thousands | 344,973 | 345,502 | 345,222 | 345,956 | 351,302 | 129,998 | 130,099 | 130,376 | 132,746 | 129,117 | 133,006 | 136,183 | 139,497 | 142,825 | 148,696 | 157,145 | 162,871 | 161,748 | 157,124 | 155,988 |
| Fixed asset turnover | 3.29 | 3.16 | 2.94 | 2.63 | 2.21 | 5.33 | 4.84 | 4.30 | 3.76 | 3.39 | 2.84 | 2.37 | 2.01 | 2.45 | 2.83 | 3.32 | 3.83 | 3.87 | 3.98 | 3.94 |
March 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,136,594K ÷ $344,973K
= 3.29
Fixed asset turnover ratio is an important efficiency ratio that measures how effectively a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is efficiently using its fixed assets to generate sales.
In the case of Cactus Inc, the fixed asset turnover ratio has varied over the quarters. The ratio has ranged from a low of 2.01 in March 2021 to a high of 5.33 in December 2022. Generally, during the more recent quarters, the fixed asset turnover ratio has been stable and relatively high, indicating efficient utilization of fixed assets to generate revenue.
It is important to note that a high fixed asset turnover ratio may also suggest that the company is operating with a leaner asset base, which could have implications for future growth and expansion opportunities. However, a consistently high ratio can also reflect operational efficiency and effective asset management practices.
Overall, Cactus Inc's fixed asset turnover ratio shows a positive trend over the quarters, indicating effective management of fixed assets to generate sales. Potential stakeholders may view this as a sign of operational efficiency and sound financial management.
Peer comparison
Mar 31, 2024