Guess? Inc. (GES)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,749,310 | 2,640,650 | 2,591,630 | 1,876,530 | 2,678,110 |
| Property, plant and equipment | US$ in thousands | 231,516 | 221,300 | 872,273 | 216,196 | 288,112 |
| Fixed asset turnover | 11.88 | 11.93 | 2.97 | 8.68 | 9.30 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,749,310K ÷ $231,516K
= 11.88
The fixed asset turnover ratio for Guess? Inc. has exhibited fluctuations over the past five years. In Feb 3, 2024, the ratio stands at 11.88, a slight decrease from the previous year's ratio of 11.93. This suggests that the company generated $11.88 in sales for every dollar invested in fixed assets during the year.
The substantial increase in the fixed asset turnover ratio from 2022 to 2023, from 2.97 to 8.68, indicates improved efficiency in utilizing its fixed assets to generate sales. However, the ratio decreased slightly in 2024, albeit remaining at a relatively high level compared to previous years.
Overall, the trend in the fixed asset turnover ratio for Guess? Inc. showcases varying levels of efficiency in utilizing fixed assets to drive sales over the past five years. Further analysis of the company's operational strategies and capital expenditure decisions may provide additional insights into the factors influencing these fluctuations.