Name: Fixed Asset Turnover

Definition: Fixed asset turnover shows how well the company’s long-term physical assets — factories, equipment, property — are being used to generate sales. A high ratio means the company’s facilities are productive and efficient. A low ratio might signal underused assets or over-investment in equipment that isn’t driving enough sales.

Interpretation:
• In '2021', RGCO's fixed asset turnover was 0.36, illustrating how efficiently fixed assets are generating revenue. Industry average for Oil & Gas Production in '2021' stood at 0.72.
• In '2022', RGCO's fixed asset turnover was 0.38, illustrating how efficiently fixed assets are generating revenue. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 1.03. Industry average increased by 0.31 compared to previous year.
• In '2023', RGCO's fixed asset turnover was 0.41, illustrating how efficiently fixed assets are generating revenue. The increase since '2022' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2023' stood at 0.80. Industry average declined by 0.23 from previous year.
• In '2024', RGCO's fixed asset turnover was 0.33, illustrating how efficiently fixed assets are generating revenue. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 0.70. Industry average declined by 0.10 from previous year.
Overall, RGCO's fixed asset turnover has consistently declined during the past 4 years.

Formula: Fixed Asset Turnover = Net Sales / Net Fixed Assets

Good Range: Ranges from 1 to 5 depending on asset intensity.