Buckle Inc (BKE)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,261,100 | 1,345,190 | 1,294,610 | 901,278 | 900,254 |
| Property, plant and equipment | US$ in thousands | 128,837 | 112,402 | 100,504 | 100,415 | 113,848 |
| Fixed asset turnover | 9.79 | 11.97 | 12.88 | 8.98 | 7.91 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,261,100K ÷ $128,837K
= 9.79
The fixed asset turnover ratio is a measure of how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets.
Analyzing Buckle Inc's fixed asset turnover over the past five years, we observe fluctuating values. In fiscal year 2024, the fixed asset turnover ratio stands at 9.79, indicating that Buckle Inc generated $9.79 in net sales for every dollar invested in fixed assets during the year. This represents a decrease compared to the previous year's ratio of 11.97, suggesting a decline in the company's efficiency in utilizing its fixed assets to generate revenue.
The fixed asset turnover for fiscal year 2022 and 2021 was 12.88 and 8.98, respectively. The ratio peaked in 2022, indicating that Buckle Inc was very efficient in generating revenue from its fixed assets during that period. However, it dropped significantly in 2021, signaling potential inefficiencies in asset utilization.
In the year 2020, the fixed asset turnover ratio was 7.91, indicating a moderate level of efficiency in generating revenue from fixed assets.
Overall, the trend in Buckle Inc's fixed asset turnover suggests that the company has experienced fluctuations in efficiency in utilizing its fixed assets to generate revenue over the past five years. Further analysis of the company's operational and financial strategies may be warranted to address any underlying factors contributing to these fluctuations.
Peer comparison
Feb 3, 2024