Foot Locker Inc (FL)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,159,000 | 8,761,000 | 8,946,000 | 7,541,000 | 8,002,000 |
| Property, plant and equipment | US$ in thousands | 930,000 | 920,000 | 917,000 | 788,000 | 824,000 |
| Fixed asset turnover | 8.77 | 9.52 | 9.76 | 9.57 | 9.71 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,159,000K ÷ $930,000K
= 8.77
Foot Locker Inc's fixed asset turnover ratio has shown a decreasing trend over the past five years. The ratio was 9.71 in 2020, which then decreased to 9.57 in 2021, further decreasing to 9.76 in 2022, and then to 9.52 in 2023, reaching its lowest point of 8.77 in 2024.
This trend indicates that Foot Locker Inc is generating less revenue relative to its fixed assets in recent years. A decreasing fixed asset turnover ratio may suggest that the company is becoming less efficient in utilizing its fixed assets to generate sales. It could indicate that there are inefficiencies in the company's operations or that there has been a decrease in sales compared to the value of its fixed assets.
Further analysis is needed to understand the underlying reasons for the decrease in fixed asset turnover and to determine if it is a cause for concern for Foot Locker Inc.
Peer comparison
Feb 3, 2024