EQT Corp. (NYSE:EQT)

Net Fixed Asset Turnover

The net fixed asset turnover ratio displays a generally increasing trend over the analyzed period from March 31, 2018, through September 30, 2022. Initially, the ratio remained relatively stable around 0.25 to 0.27 until the end of 2019, after which it experienced a decline to a low of 0.17 in December 2020. Beginning in March 2021, the ratio began to recover steadily, showing a consistent upward trend that peaks at 0.68 by September 30, 2022. This suggests an enhanced efficiency in utilizing fixed assets to generate revenue in the latter periods.

Total Asset Turnover

The total asset turnover ratio follows a similar pattern as the net fixed asset turnover. It remained stable around 0.22 to 0.23 until late 2019, decreasing gradually to 0.15 in December 2020. Following this trough, a gradual improvement is observed starting in March 2021, with the ratio increasing to 0.55 by September 2022. This improvement indicates a better use of total assets for revenue generation in recent quarters compared to earlier periods.

Equity Turnover

The equity turnover ratio shows greater variability and a strong upward momentum starting from early 2021. In the earlier periods, from March 2018 through December 2020, the ratio remained relatively flat between approximately 0.29 and 0.43, then declined to a low of 0.29 in December 2020. Starting in March 2021, the ratio increased significantly, reaching 1.28 by September 2022. This notable rise reflects a markedly higher rate of revenue generation per unit of equity, implying improved operational efficiency and possibly effective equity management in the more recent quarters.

Sales of natural gas, natural gas liquids and oil

The sales figures demonstrate notable fluctuations over the period from March 2018 to September 2022. Initially, sales displayed a general downward trend from the high of approximately 1,436 million US dollars in December 2018 to a low near 499 million in June 2020. Following this trough, there is a strong recovery and significant growth in sales, reaching a peak of approximately 3,694 million US dollars by September 2022. This suggests improved market conditions or increased output in recent years, particularly after mid-2020.

Net property, plant and equipment

The net property, plant, and equipment values fluctuate moderately throughout the timeframe. Starting just above 22,875 million US dollars in March 2018, the figure dips notably in late 2018 and remains relatively stable around 16,000 million to 18,800 million US dollars from late 2019 through 2022. There is a slight declining trend towards the end of the period, with the book value of these assets decreasing to approximately 18,132 million US dollars by September 2022. This may indicate depreciation, asset disposals, or reduced capital expenditure over time.

Net fixed asset turnover

Data for net fixed asset turnover ratio begins in March 2019, showing a steady decline from 0.27 to a low of 0.17 by December 2020, indicating decreasing efficiency in utilizing fixed assets to generate sales during that period. However, from March 2021 onward, there is a pronounced and sustained improvement, climbing from 0.19 to 0.68 by September 2022. This upward trend aligns with the increase in sales and suggests enhanced asset utilization or better operational performance in generating sales revenue from the existing asset base.

The quarterly financial data indicates distinct trends in sales, asset base, and asset turnover ratios over the analyzed period.

Sales of natural gas, natural gas liquids, and oil

Sales exhibited noticeable fluctuations with an overall upward trajectory from March 31, 2018, through September 30, 2022. Initial sales around 1,226,374 thousand US dollars in the first quarter of 2018 decreased to a low point near 498,772 thousand US dollars in the second quarter of 2020. Following this trough, sales showed a strong recovery, progressively increasing to a peak of approximately 3,694,194 thousand US dollars by the third quarter of 2022. The latter part of the period demonstrates accelerated growth, particularly from 2021 onward.

Total assets

Total assets showed a declining trend from the first quarter of 2018 through the end of 2020, falling from approximately 27,632,346 thousand US dollars to around 18,113,469 thousand US dollars. The asset base stabilized somewhat in 2021 with a slight uptrend noted in early 2022, reaching a plateau near 22 to 23 billion US dollars by mid to late 2022. This pattern suggests asset reduction or divestiture in the initial years followed by stabilization and modest growth in recent quarters.

Total asset turnover ratio

The total asset turnover ratio, available from the third quarter of 2018, initially remained stable at 0.22 to 0.23 through early 2019. Subsequently, a decline was visible through 2020, hitting a low near 0.15. Thereafter, a marked improvement took place from early 2021 onwards, with the ratio advancing from 0.17 to 0.55 by the third quarter of 2022. This upsurge reflects enhanced efficiency in utilizing assets to generate sales, likely driven by the significant rise in sales combined with the relative stabilization of total assets.

In summary, the data reveals a phase of contraction and operational downsizing in the company’s asset base coinciding with lower sales figures in 2019 and 2020. This was followed by a strong recovery period marked by robust sales growth and improved asset utilization efficiency. The recent high asset turnover ratios indicate a more effective deployment of assets to drive revenue, suggesting positive momentum in operational performance.

Sales of natural gas, natural gas liquids and oil

The sales figures exhibit a generally increasing trend over the observed periods, despite some fluctuations. Initially, there was a decline from 1,226,374 thousand US dollars in March 2018 to 715,201 thousand US dollars in March 2020, reflecting a significant downturn. After this low point, sales recovered steadily, reaching 3,694,194 thousand US dollars by September 2022. Notable acceleration in sales occurred particularly from December 2020 onwards, with a sharp rise in 2021 and continuing strong growth into 2022.

Common shareholders’ equity

Common shareholders' equity shows a declining pattern for much of the timeframe. Starting at 11,716,322 thousand US dollars in March 2018, it generally decreased, reaching its lowest point at 8,248,460 thousand US dollars in September 2021. A recovery trend emerged afterward, with the equity increasing to 9,618,962 thousand US dollars by September 2022. The equity decline from 2018 through 2021 suggests challenges faced by the company, but the rebound in 2022 may indicate improved capital conditions or retained earnings growth.

Equity turnover ratio

The equity turnover ratio, which measures sales generated per unit of shareholders’ equity, displays considerable variability. From a stable level around 0.4 in 2018 and early 2019, it progressively declined to a minimum of 0.29 by December 2020. Following this trough, the ratio increased significantly, reaching 1.28 by September 2022. This sharp increase reflects improved efficiency in utilizing equity to generate sales, aligned with the strong sales recovery noted in the same period. The ratio growth suggests that sales expanded at a faster rate than equity, enhancing overall capital productivity.