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.
Long-term Activity Ratios (Summary)
Pioneer Natural Resources Co., long-term (investment) activity ratios
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).
Analysis of the investment activity ratios reveals a cyclical trend characterized by a significant decline in 2020, a peak in efficiency during 2022, and a subsequent moderation in 2023. The high degree of correlation between all four turnover metrics indicates that revenue fluctuations have been the primary driver of asset and equity utilization rates.
- Fixed Asset Utilization
- Net fixed asset turnover exhibited volatility over the five-year period, falling from 0.60 in 2019 to 0.44 in 2020. A steady recovery followed, peaking at 0.78 in 2022 before retreating to 0.58 in 2023. The inclusion of operating lease right-of-use assets resulted in negligible differences in the ratios, suggesting that these leases do not significantly alter the overall asset intensity of the operations.
- Total Asset Productivity
- Total asset turnover mirrored the trajectory of fixed asset turnover, reaching a period low of 0.37 in 2020 and a period high of 0.68 in 2022. This pattern confirms that the company's ability to generate revenue from its total asset base is closely tied to the productivity of its long-term investments.
- Equity Efficiency
- Equity turnover demonstrated the most pronounced movements, dropping to 0.61 in 2020 and climbing to a peak of 1.08 in 2022. This indicates a period of optimized revenue generation relative to shareholders' equity in 2022, although this efficiency decreased to 0.84 by the end of 2023.
The convergence of these trends suggests that while the company achieved a significant increase in operational efficiency between 2021 and 2022, the gains were not fully sustained into 2023, returning the activity ratios to levels closely resembling those seen in 2019 and 2021.
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Net Fixed Asset Turnover
Pioneer Natural Resources Co., 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) | ||||||
| Revenue from contracts with purchasers | 19,374) | 24,384) | 17,870) | 7,024) | 9,671) | |
| Property and equipment, net | 33,189) | 31,288) | 29,876) | 16,023) | 16,077) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 0.58 | 0.78 | 0.60 | 0.44 | 0.60 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | 1.28 | 1.64 | 1.06 | — | — | |
| ConocoPhillips | 0.80 | 1.21 | 0.71 | — | — | |
| ExxonMobil Holdings Corp. | 1.56 | 1.95 | 1.28 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.34 | 1.73 | 1.12 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | 1.39 | 1.77 | 1.15 | — | — | |
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 = Revenue from contracts with purchasers ÷ Property and equipment, net
= 19,374 ÷ 33,189 = 0.58
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a period of significant volatility in revenue generation coupled with a substantial expansion of the fixed asset base. The net fixed asset turnover ratio highlights fluctuating efficiency in utilizing property and equipment to generate sales between 2019 and 2023.
- Revenue and Asset Base Dynamics
- Revenue experienced a decline in 2020, followed by a period of rapid growth that peaked in 2022 at 24,384 million US dollars. Simultaneously, the net property and equipment balance remained stable until 2021, when it increased sharply from 16,023 million to 29,876 million US dollars. This expansion continued through 2023, reaching 33,189 million US dollars, indicating a significant increase in capital investment or asset acquisition during this timeframe.
- Net Fixed Asset Turnover Trends
- The net fixed asset turnover ratio reached a minimum of 0.44 in 2020, driven by a reduction in revenue while the asset base remained constant. Efficiency improved over the following two years, peaking at 0.78 in 2022, which indicates that the growth in revenue outpaced the increase in fixed assets. By 2023, the ratio declined to 0.58, reflecting a combination of contracting revenue and a continuing increase in the net property and equipment balance.
- Investment Efficiency Insights
- The divergence observed in 2023, where assets grew to 33,189 million US dollars while the turnover ratio dropped to 0.58, suggests a period of diminished asset productivity. While the asset base was expanded aggressively starting in 2021, the subsequent decline in revenue has resulted in a lower rate of sales generation per dollar of fixed assets compared to the 2022 peak.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Pioneer Natural Resources Co., 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) | ||||||
| Revenue from contracts with purchasers | 19,374) | 24,384) | 17,870) | 7,024) | 9,671) | |
| Property and equipment, net | 33,189) | 31,288) | 29,876) | 16,023) | 16,077) | |
| Operating lease right-of-use assets | 398) | 340) | 348) | 197) | 280) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 33,587) | 31,628) | 30,224) | 16,220) | 16,357) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.58 | 0.77 | 0.59 | 0.43 | 0.59 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | 1.24 | 1.59 | 1.03 | — | — | |
| ConocoPhillips | 0.79 | 1.20 | 0.70 | — | — | |
| ExxonMobil Holdings Corp. | 1.51 | 1.89 | 1.24 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.30 | 1.68 | 1.09 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | 1.35 | 1.72 | 1.12 | — | — | |
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) = Revenue from contracts with purchasers ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 19,374 ÷ 33,587 = 0.58
2 Click competitor name to see calculations.
The analysis of net fixed asset turnover reveals a period of significant volatility in asset utilization efficiency, closely mirroring fluctuations in annual revenue and a substantial expansion of the company's asset base between 2019 and 2023.
- Revenue and Asset Correlation
- A decline in efficiency is observed in 2020, where the net fixed asset turnover ratio fell to 0.43. This contraction was driven by a decrease in revenue to 7,024 million US dollars while the net fixed asset base remained relatively stagnant at 16,220 million US dollars. Conversely, a recovery occurred in 2021 as revenue surged to 17,870 million US dollars, returning the ratio to 0.59 despite a nearly 86% increase in net fixed assets to 30,224 million US dollars.
- Peak Operational Efficiency
- The highest level of asset productivity was achieved in 2022, with the turnover ratio peaking at 0.77. This represents the most efficient period of the five-year window, as revenue reached its maximum value of 24,384 million US dollars, significantly outpacing the growth of net fixed assets, which stood at 31,628 million US dollars.
- Recent Trend and Asset Intensity
- A downward trend in efficiency is noted for the period ending December 31, 2023, with the ratio declining to 0.58. This deterioration is attributed to a dual impact: a contraction in revenue to 19,374 million US dollars and a continued increase in the net fixed asset base to 33,587 million US dollars. The result is a return to efficiency levels similar to those seen in 2019 and 2021, despite a significantly larger capital investment in property and equipment.
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Total Asset Turnover
Pioneer Natural Resources Co., 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) | ||||||
| Revenue from contracts with purchasers | 19,374) | 24,384) | 17,870) | 7,024) | 9,671) | |
| Total assets | 36,613) | 35,740) | 36,811) | 19,229) | 19,067) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.53 | 0.68 | 0.49 | 0.37 | 0.51 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | 0.75 | 0.91 | 0.65 | — | — | |
| ConocoPhillips | 0.59 | 0.84 | 0.51 | — | — | |
| ExxonMobil Holdings Corp. | 0.89 | 1.08 | 0.82 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.80 | 0.99 | 0.71 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Energy | 0.79 | 0.97 | 0.71 | — | — | |
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 = Revenue from contracts with purchasers ÷ Total assets
= 19,374 ÷ 36,613 = 0.53
2 Click competitor name to see calculations.
The total asset turnover ratio exhibited significant volatility between 2019 and 2023, reflecting a period of substantial asset expansion and fluctuating revenue streams. The efficiency with which assets were utilized to generate sales peaked in 2022 before experiencing a contraction in 2023.
- Revenue Trends
- Revenue experienced a notable decline in 2020, falling to 7,024 million US$ from 9,671 million US$ in 2019. This was followed by a period of rapid growth, with revenues climbing to 17,870 million US$ in 2021 and peaking at 24,384 million US$ in 2022. By 2023, revenue moderated to 19,374 million US$, representing a decrease from the previous year's high.
- Asset Base Evolution
- The asset base remained relatively stable between 2019 and 2020, hovering around 19 billion US$. A significant expansion occurred in 2021, where total assets nearly doubled to 36,811 million US$. This elevated asset level was sustained through 2023, concluding at 36,613 million US$, suggesting a permanent increase in the company's capital investment scale.
- Total Asset Turnover Performance
- The turnover ratio declined from 0.51 in 2019 to a period low of 0.37 in 2020, coinciding with the drop in revenue. Despite the massive increase in total assets in 2021, the ratio improved to 0.49 as revenue growth outpaced asset expansion. The ratio reached its peak of 0.68 in 2022, driven by the highest recorded revenue against a slightly reduced asset base. In 2023, the ratio fell to 0.53, as revenue declined while the asset base remained high.
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Equity Turnover
Pioneer Natural Resources Co., 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) | ||||||
| Revenue from contracts with purchasers | 19,374) | 24,384) | 17,870) | 7,024) | 9,671) | |
| Equity | 23,171) | 22,541) | 22,837) | 11,569) | 12,119) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.84 | 1.08 | 0.78 | 0.61 | 0.80 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | 1.22 | 1.48 | 1.12 | — | — | |
| ConocoPhillips | 1.14 | 1.64 | 1.01 | — | — | |
| ExxonMobil Holdings Corp. | 1.63 | 2.04 | 1.64 | — | — | |
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.42 | 1.77 | 1.35 | — | — | |
| Equity Turnover, Industry | ||||||
| Energy | 1.43 | 1.76 | 1.36 | — | — | |
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 = Revenue from contracts with purchasers ÷ Equity
= 19,374 ÷ 23,171 = 0.84
2 Click competitor name to see calculations.
The analysis of equity turnover from 2019 to 2023 reveals a volatile relationship between revenue generation and the equity base, characterized by a significant contraction in 2020 followed by a strong recovery and a subsequent correction in 2023.
- Equity Turnover Volatility
- The equity turnover ratio experienced a decline from 0.80 in 2019 to a low of 0.61 in 2020. A recovery followed, with the ratio climbing to a peak of 1.08 in 2022, before retreating to 0.84 by the end of 2023. This trajectory indicates fluctuating efficiency in utilizing shareholder equity to generate sales over the five-year period.
- Revenue Dynamics
- Revenue exhibited substantial variance, dropping to US$ 7,024 million in 2020 before surging to US$ 24,384 million in 2022. The sharp increase in revenue between 2020 and 2022 served as the primary driver for the improvement in equity turnover, reaching its maximum efficiency when revenue growth significantly outpaced the growth of the equity base.
- Equity Base Expansion
- The equity position remained relatively stable between 2019 and 2020 but underwent a significant expansion in 2021, increasing from US$ 11,569 million to US$ 22,837 million. This nearly twofold increase in equity initially moderated the growth of the turnover ratio in 2021, as the denominator increased substantially alongside the rising revenue.
- 2023 Performance Correlation
- In 2023, a decline in revenue to US$ 19,374 million, coupled with a slight increase in equity to US$ 23,171 million, resulted in the equity turnover ratio falling to 0.84. This contraction suggests a reduction in the company's ability to convert its equity investment into sales compared to the peak observed in 2022.
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