Guess? Inc. (GES)
Fixed asset turnover
Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 2,740,394 | 2,650,836 | 2,635,539 | 2,616,264 | 2,644,409 | 2,661,222 | 2,674,342 | 2,663,471 | 2,591,631 | 2,440,151 | 2,366,365 | 2,136,280 | 1,876,529 | 2,070,328 | 2,116,988 | 2,401,669 | 2,678,109 | 2,672,982 | 2,662,445 | 2,625,096 |
Property, plant and equipment | US$ in thousands | 231,516 | 218,036 | 221,624 | 221,970 | 221,300 | 211,760 | 209,684 | 212,206 | 872,273 | 193,701 | 187,343 | 211,354 | 216,196 | 220,996 | 240,081 | 244,681 | 288,112 | 298,036 | 302,906 | 308,136 |
Fixed asset turnover | 11.84 | 12.16 | 11.89 | 11.79 | 11.95 | 12.57 | 12.75 | 12.55 | 2.97 | 12.60 | 12.63 | 10.11 | 8.68 | 9.37 | 8.82 | 9.82 | 9.30 | 8.97 | 8.79 | 8.52 |
February 3, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,740,394K ÷ $231,516K
= 11.84
Fixed asset turnover measures how efficiently a company is utilizing its fixed assets to generate revenue. It is calculated by dividing net sales by average fixed assets. A higher fixed asset turnover indicates that the company is generating more sales relative to its investment in fixed assets.
Looking at the fixed asset turnover of Guess? Inc. over the past 20 quarters, we observe fluctuations in the ratio. The ratio ranged from a low of 2.97 in January 2022 to a high of 12.75 in July 2022. This up-and-down trend suggests variability in how effectively Guess? Inc. has been utilizing its fixed assets to generate sales.
On average, Guess? Inc. maintained a relatively high fixed asset turnover of around 10-12 over this period. This indicates that the company has been efficient in generating sales revenue relative to its investment in fixed assets.
However, we can also see some outliers where the fixed asset turnover dropped notably, such as the low of 2.97 in January 2022. This could signify a period where Guess? Inc. was not effectively utilizing its fixed assets to drive sales, possibly due to operational inefficiencies or changes in the business environment.
In conclusion, while Guess? Inc. generally demonstrates a strong fixed asset turnover, investors and analysts should closely monitor any significant deviations from the average ratio to understand the underlying factors impacting the company's efficiency in utilizing its fixed assets.