Cal-Maine Foods Inc (CALM)
Fixed asset turnover
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,325,870 | 3,145,760 | 1,781,860 | 1,345,790 | 1,351,610 |
| Property, plant and equipment | US$ in thousands | 857,234 | 744,540 | 677,796 | 589,417 | 557,375 |
| Fixed asset turnover | 2.71 | 4.23 | 2.63 | 2.28 | 2.42 |
June 1, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,325,870K ÷ $857,234K
= 2.71
The fixed asset turnover ratio of Cal-Maine Foods Inc has fluctuated over the past five years, ranging from a high of 4.23 in June 3, 2023 to a low of 2.28 in May 29, 2021. This ratio measures the company's efficiency in generating sales revenue relative to its investment in fixed assets. A higher fixed asset turnover indicates that the company is generating more sales per dollar of fixed assets.
In the most recent period as of Jun 1, 2024, Cal-Maine Foods Inc has a fixed asset turnover of 2.71, which shows an improvement compared to the prior year, but it is still lower than the peak achieved in Jun 3, 2023. This implies that the company is generating $2.71 in sales for every dollar invested in fixed assets during the current period.
Overall, the fluctuation in fixed asset turnover suggests that Cal-Maine Foods Inc has been able to efficiently utilize its fixed assets to generate sales revenue, with some variability in performance over the years. It is important for the company to continue monitoring this ratio to ensure optimal utilization of its fixed assets and to drive profitability in the future.