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.