Apogee Enterprises Inc (APOG)
Fixed asset turnover
| Mar 2, 2024 | Feb 25, 2023 | Feb 26, 2022 | Feb 27, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,416,940 | 1,440,700 | 1,313,980 | 1,230,770 | 1,387,440 |
| Property, plant and equipment | US$ in thousands | 244,216 | 248,867 | 249,995 | 298,443 | 324,386 |
| Fixed asset turnover | 5.80 | 5.79 | 5.26 | 4.12 | 4.28 |
March 2, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,416,940K ÷ $244,216K
= 5.80
The fixed asset turnover ratio for Apogee Enterprises Inc has shown a consistent improvement over the past five years, increasing from 4.28 in Feb 2020 to 5.80 in Mar 2024. This indicates that the company generates more revenue relative to its investment in fixed assets.
A high fixed asset turnover ratio signifies that Apogee Enterprises is efficiently utilizing its fixed assets to generate sales. The company has been able to increase its revenue generation capacity without a proportional increase in fixed assets, which can be a positive indicator of operational efficiency.
The trend of increasing fixed asset turnover over the years reflects effective management of assets by Apogee Enterprises. It suggests that the company is effectively managing and utilizing its fixed assets to drive higher sales, which can potentially lead to improved profitability and shareholder value.