Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Newmont Corp., long-term (investment) activity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net fixed asset turnover
- The net fixed asset turnover ratio increased steadily from 0.39 in 2019 to a peak of 0.51 in 2021, indicating improved efficiency in utilizing fixed assets to generate sales. However, this ratio declined significantly in 2023 to 0.31, suggesting a reduction in asset utilization efficiency in the most recent period.
- Net fixed asset turnover (including operating lease, right-of-use asset)
- This adjusted ratio follows the same trend as the standard net fixed asset turnover, starting at 0.38 in 2019, rising to 0.50 in 2021, and then dropping to 0.31 in 2023. The close alignment of these two ratios implies that the inclusion of operating lease assets does not materially change the overall asset efficiency trend.
- Total asset turnover
- Total asset turnover exhibited gradual improvement from 0.24 in 2019 to 0.31 in 2022, reflecting enhanced overall asset utilization. Similar to net fixed assets, the turnover declined to 0.21 in 2023, indicating less efficient use of the total asset base during the latest year.
- Equity turnover
- Equity turnover showed a consistent upward trend from 0.45 in 2019 to 0.62 in 2022, suggesting increased sales generated per unit of equity. Nevertheless, this ratio experienced a pronounced decline to 0.41 in 2023, aligning with the downturn observed in other turnover measures and signaling a possible decrease in the efficiency of equity investment utilization.
Net Fixed Asset Turnover
Newmont Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and mine development, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Materials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover = Sales ÷ Property, plant and mine development, net
= ÷ =
2 Click competitor name to see calculations.
- Sales Trends
- Sales increased steadily from 2019 to 2021, rising from US$9,740 million to US$12,222 million. However, sales then declined slightly in 2022 and 2023, reaching US$11,812 million, indicating a peak in 2021 followed by a mild contraction in subsequent years.
- Property, Plant, and Mine Development
- The net value of property, plant, and mine development remained relatively stable from 2019 through 2022, fluctuating marginally between approximately US$24,000 million and US$25,000 million. A significant increase occurred in 2023, with the value rising sharply to US$37,563 million, suggesting substantial investment or capitalization in that year.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed an improving trend from 2019 through 2021, increasing from 0.39 to 0.51. This indicates more efficient use of fixed assets to generate sales during this period. However, the ratio declined to 0.49 in 2022 and dropped sharply to 0.31 in 2023, reflecting a decrease in asset utilization efficiency, possibly related to the significant asset base increase noted in 2023.
- Overall Insights
- The data reveals a period of growth in sales up to 2021, followed by a slight downturn. The considerable rise in property, plant, and mine development assets in 2023 contrasts with the declining net fixed asset turnover, implying that the recent investments have not yet translated into proportional sales increases or efficiencies. This could indicate ongoing development or expansion activities with a lag in revenue generation.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Newmont Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Property, plant and mine development, net | ||||||
| Operating lease right-of-use (ROU) assets | ||||||
| Property, plant and mine development, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Materials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Sales ÷ Property, plant and mine development, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Sales Trends
- Sales exhibited a positive trajectory from 2019 through 2021, increasing from $9,740 million to $12,222 million. However, in the subsequent years, sales showed a slight decline, decreasing to $11,915 million in 2022 and further to $11,812 million in 2023. This indicates a peak in sales in 2021 followed by a modest downward adjustment over the next two years.
- Property, Plant, and Mine Development (Net)
- The net value of property, plant, and mine development, including operating lease right-of-use assets, remained relatively stable between 2019 and 2022, with a slight downward trend from $25,351 million to $24,189 million. In 2023, there was a significant increase to $37,668 million, representing a substantial investment or revaluation in fixed assets during that year.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, incorporating operating leases and right-of-use assets, improved from 0.38 in 2019 to a peak of 0.50 in 2021, reflecting enhanced efficiency in generating sales from fixed assets. After 2021, this ratio declined to 0.49 in 2022 and further to 0.31 in 2023. The marked decrease in 2023 coincides with the significant increase in net property, plant, and mine development, suggesting that the asset base expanded faster than sales, resulting in lower turnover efficiency.
- Overall Insights
- The data indicate an initial phase of growth in sales and asset efficiency until 2021, followed by a stabilization or slight contraction in sales and a shift in asset management strategy. The substantial rise in property, plant, and mine development assets in 2023 points to considerable capital expenditure or asset revaluation that has not yet translated into proportional sales growth, thereby reducing asset turnover efficiency. This may imply a period of asset accumulation in anticipation of future revenue growth or adjustments in asset valuation methodologies.
Total Asset Turnover
Newmont Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Total Asset Turnover, Industry | ||||||
| Materials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Total asset turnover = Sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends in the company's performance over the observed five-year period.
- Sales
- Sales showed a consistent upward trend from 2019 through 2021, increasing from 9,740 million US dollars to 12,222 million US dollars. However, in subsequent years, sales slightly declined, first to 11,915 million US dollars in 2022 and then to 11,812 million US dollars in 2023. This indicates a peak in sales performance in 2021 followed by a mild contraction over the next two years.
- Total Assets
- Total assets remained relatively stable between 2019 and 2022, fluctuating modestly around the 39,000 to 41,000 million US dollars range. In 2023, there was a notable increase in total assets, reaching 55,506 million US dollars. This significant jump suggests either substantial investment, acquisition, or asset revaluation occurring in that year.
- Total Asset Turnover
- Total asset turnover, which measures the efficiency of asset utilization to generate sales, improved steadily from 0.24 in 2019 to 0.31 in 2022. This improvement corresponds with the sales growth and stable asset base during this period. However, in 2023, the ratio dropped sharply to 0.21, reflecting diminished efficiency likely due to the large increase in total assets that was not matched by an increase in sales.
In summary, the company exhibited growth in sales and improved asset utilization efficiency through 2022, followed by a period in 2023 where asset base expansion outpaced sales growth. This shift resulted in lower overall asset turnover, signaling a potential challenge in leveraging new or increased assets to sustain previous levels of sales performance.
Equity Turnover
Newmont Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Sales | ||||||
| Total Newmont stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Freeport-McMoRan Inc. | ||||||
| Equity Turnover, Industry | ||||||
| Materials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 2023 Calculation
Equity turnover = Sales ÷ Total Newmont stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Sales Trend
- The sales figures showed a general upward trend from 2019 to 2021, increasing from US$9,740 million to US$12,222 million. However, from 2021 onwards, sales experienced a slight decline, decreasing to US$11,915 million in 2022 and further to US$11,812 million in 2023.
- Total Stockholders’ Equity
- The total stockholders’ equity increased from US$21,420 million in 2019 to US$23,008 million in 2020, but then declined progressively to US$19,354 million in 2022. In 2023, there was a significant rebound to US$29,027 million, marking the highest value within the observed period.
- Equity Turnover Ratio
- The equity turnover ratio demonstrated an upward trend from 0.45 in 2019 to a peak of 0.62 in 2022, indicating improved efficiency in generating sales from equity during that span. Nevertheless, the ratio sharply declined to 0.41 in 2023, suggesting a reduction in asset utilization efficiency relative to equity for that year.
- Overall Observations
- While sales peaked in 2021 and slightly decreased thereafter, the total equity showed volatility with a notable increase in the final year. The equity turnover ratio aligned with sales trends until 2022 but diverged markedly in 2023 due to the substantial increase in equity coupled with lower sales, impacting the efficiency metric negatively.