Exxon Mobil Corp (XOM)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	344,582,000	413,680,000	285,640,000	181,502,000	264,938,000
Property, plant and equipment	US$ in thousands	214,940,000	204,692,000	216,552,000	227,553,000	253,018,000
Fixed asset turnover		1.60	2.02	1.32	0.80	1.05

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $344,582,000K ÷ $214,940,000K
= 1.60

The fixed asset turnover ratio measures a company's efficiency in generating sales revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

Analyzing Exxon Mobil Corp.'s fixed asset turnover over the years, we observe fluctuations in the ratio. In 2023, the ratio decreased to 1.57 from 1.96 in 2022, which could imply a lower efficiency in utilizing fixed assets to generate sales revenue. However, compared to 2021 and 2020, where the ratios were 1.29 and 0.79 respectively, the 2023 ratio still demonstrates improved efficiency.

It is important to note that the ratio was higher in 2019 at 1.03 compared to 2023, suggesting a better performance in generating sales from fixed assets back then. The varying ratios over the years could indicate changing operational strategies, investment decisions, or industry dynamics impacting Exxon Mobil's ability to leverage its fixed assets effectively.

Further investigation into the company's operational performance, asset management strategies, and industry trends could provide deeper insights into the factors influencing the fluctuations in Exxon Mobil's fixed asset turnover ratio.