Abercrombie & Fitch Company (ANF)

Fixed asset turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	4,280,680	3,697,750	3,712,770	3,125,380	3,623,070
Property, plant and equipment	US$ in thousands	538,033	551,585	508,336	550,587	665,290
Fixed asset turnover		7.96	6.70	7.30	5.68	5.45

February 3, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,280,680K ÷ $538,033K
= 7.96

The fixed asset turnover ratio measures the efficiency with which Abercrombie & Fitch Company generates sales revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.

Over the past five years, Abercrombie & Fitch has shown a steady improvement in its fixed asset turnover ratio, increasing from 5.45 in 2020 to 7.96 in 2024. This trend implies that the company has been more efficient in using its fixed assets to drive sales growth.

The significant increase in fixed asset turnover from 2020 to 2024 indicates that Abercrombie & Fitch has been able to extract more value from its fixed assets, possibly through better asset management or increased sales volume. This improvement suggests improved operational efficiency and could lead to higher profitability for the company in the long term.

Overall, the upward trajectory of Abercrombie & Fitch's fixed asset turnover ratio reflects positively on the company's ability to generate revenue from its fixed asset base efficiently. Investors and stakeholders may view this trend as a favorable indication of the company's operational effectiveness and financial performance.