American Eagle Outfitters Inc (AEO)

Fixed asset turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	5,261,770	4,989,830	5,010,780	3,759,110	4,308,210
Property, plant and equipment	US$ in thousands	713,336	781,514	728,272	623,808	735,120
Fixed asset turnover		7.38	6.38	6.88	6.03	5.86

February 3, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $5,261,770K ÷ $713,336K
= 7.38

The fixed asset turnover ratio measures how efficiently American Eagle Outfitters Inc generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is generating more sales for each dollar invested in fixed assets.

The trend in American Eagle Outfitters Inc's fixed asset turnover ratio over the past five years has been generally positive, with the ratio increasing from 5.86 in February 2020 to 7.38 in February 2024. This indicates that the company has been able to improve its efficiency in utilizing its fixed assets to generate sales revenue.

The highest fixed asset turnover ratio of 7.38 was reported in February 2024, suggesting that American Eagle Outfitters Inc was able to generate $7.38 in sales for every dollar invested in fixed assets during that period. This reflects a strong performance in terms of asset utilization and efficiency.

Overall, the trend in the fixed asset turnover ratio for American Eagle Outfitters Inc indicates that the company has been effectively managing its fixed assets to generate sales revenue, which is a positive sign for its operational efficiency and financial performance.