Guess? Inc. (GES)
Total 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 |
| Total assets | US$ in thousands | 2,590,020 | 2,425,450 | 2,555,630 | 2,465,870 | 2,428,960 |
| Total asset turnover | 1.06 | 1.09 | 1.01 | 0.76 | 1.10 |
February 3, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,749,310K ÷ $2,590,020K
= 1.06
The total asset turnover ratio measures the efficiency with which Guess? Inc. generates sales revenue relative to its total assets. A higher ratio indicates that the company is able to generate more revenue per dollar of assets, which is generally seen as a positive sign of operational efficiency.
Looking at the trend over the past five years, Guess? Inc.'s total asset turnover has fluctuated. In FY2024, the total asset turnover ratio decreased slightly to 1.06 from 1.09 in FY2023. This suggests that the company generated $1.06 in sales for every $1 of total assets in FY2024.
Comparing this to the previous years, the total asset turnover ratio was higher in FY2023 at 1.09, indicating a better efficiency in generating sales revenue relative to assets. However, in FY2022, the ratio was lower at 1.01, indicating a decrease in efficiency. The lowest ratio was in FY2021 at 0.76, where the company generated only $0.76 in sales for every $1 of total assets. In FY2020, the ratio improved to 1.10, showing a positive trend in operational efficiency.
Overall, the varying total asset turnover ratios suggest mixed performance in utilizing assets to generate sales revenue. It would be important for Guess? Inc. to further assess and improve its asset management strategies to enhance operational efficiency and profitability in the future.