Bath & Body Works Inc. (BBWI)
Fixed asset turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,118,000 | 7,175,000 | 7,203,000 | 7,253,000 | 7,300,000 | 7,438,000 | 7,510,000 | 9,197,000 | 9,306,000 | 11,098,000 | 12,442,000 | 11,542,000 | 11,726,000 | 11,614,000 | 11,357,000 | 9,078,000 | 10,053,000 | 10,198,000 | 10,296,000 | 13,240,000 |
| Property, plant and equipment | US$ in thousands | 1,220,000 | 1,244,000 | 1,236,000 | 1,223,000 | 1,193,000 | 1,121,000 | 1,071,000 | 1,059,000 | 1,009,000 | 1,017,000 | 1,002,000 | 994,000 | 1,017,000 | 1,064,000 | 2,292,000 | 2,299,000 | 2,486,000 | 2,571,000 | 2,756,000 | 2,794,000 |
| Fixed asset turnover | 5.83 | 5.77 | 5.83 | 5.93 | 6.12 | 6.64 | 7.01 | 8.68 | 9.22 | 10.91 | 12.42 | 11.61 | 11.53 | 10.92 | 4.96 | 3.95 | 4.04 | 3.97 | 3.74 | 4.74 |
February 3, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,118,000K ÷ $1,220,000K
= 5.83
The fixed asset turnover for Bath & Body Works Inc. has exhibited fluctuations over the past few quarters, ranging from a low of 3.74 to a high of 12.42. The ratio indicates how efficiently the company is generating sales revenue from its fixed assets.
In general, a higher fixed asset turnover suggests that the company is effectively utilizing its fixed assets to generate sales. Bath & Body Works Inc. experienced a peak in fixed asset turnover of 12.42 in the third quarter of fiscal year 2022, indicating strong efficiency in utilizing its fixed assets during that period.
However, there have been instances where the fixed asset turnover dipped below 4, such as in the second and third quarters of fiscal year 2020 and the fourth quarter of fiscal year 2019. This could suggest potential inefficiencies or underutilization of fixed assets during those periods.
Overall, monitoring the fixed asset turnover ratio can provide insights into Bath & Body Works Inc.'s operational efficiency and asset utilization over time. The company should aim to maintain a balance between maximizing sales revenue and effectively managing its fixed assets to achieve optimal financial performance.
Peer comparison
Feb 3, 2024