Ethan Allen Interiors Inc (ETD)
Fixed asset turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 614,649 | 646,221 | 791,382 | 817,762 | 685,169 |
| Property, plant and equipment | US$ in thousands | 319,411 | 329,500 | 338,028 | 338,028 | 324,312 |
| Fixed asset turnover | 1.92 | 1.96 | 2.34 | 2.42 | 2.11 |
June 30, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $614,649K ÷ $319,411K
= 1.92
The fixed asset turnover ratio for Ethan Allen Interiors Inc. demonstrates fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the ratio stood at 2.11, indicating that the company generated approximately $2.11 in sales for every dollar invested in fixed assets. This ratio increased significantly in the subsequent year, reaching 2.42 by June 30, 2022, reflecting improved efficiency in utilizing fixed assets to generate revenue.
However, the ratio experienced a slight decline in the following year, decreasing to 2.34 as of June 30, 2023. Despite this slight decrease, the ratio remained higher than the 2021 level, suggesting that the company maintained relatively efficient asset utilization during this period.
The trend shifts downward in the subsequent years, with the ratio declining to 1.96 by June 30, 2024, and further to 1.92 by June 30, 2025. This consistent decrease indicates a reduction in sales generated per dollar of fixed assets, which could signal several underlying factors. Such factors might include substantial additions to fixed assets not yet reflected in sales, a slowdown in sales growth, or potential reductions in operational efficiency related to fixed asset utilization.
Overall, the pattern suggests an initial improvement in asset efficiency from 2021 to 2022, followed by a gradual decline over the subsequent years. The decreasing trend from 2023 onward highlights a diminishing productivity of fixed assets relative to sales, potentially warranting further investigation into asset management strategies and operational performance.
Peer comparison
Jun 30, 2025