Guess? Inc. (GES)
Total asset turnover
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,995,270 | 2,749,310 | 2,776,530 | 2,687,350 | 2,640,650 |
| Total assets | US$ in thousands | 2,766,680 | 2,590,020 | 2,590,020 | 2,425,450 | 2,425,450 |
| Total asset turnover | 1.08 | 1.06 | 1.07 | 1.11 | 1.09 |
January 31, 2025 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,995,270K ÷ $2,766,680K
= 1.08
The total asset turnover ratio for Guess? Inc. has been relatively stable over the past five years, ranging between 1.06 and 1.11. This ratio indicates that the company generates approximately $1.06 to $1.11 in revenue for every dollar of assets it holds.
A total asset turnover ratio of around 1 suggests that Guess? Inc. efficiently utilizes its assets to generate sales. However, a slight downward trend from 1.11 to 1.06 over the years may indicate some decrease in asset efficiency or a slowdown in revenue generation relative to the assets employed.
Overall, maintaining a total asset turnover ratio above 1 signifies effective asset management and a healthy level of productivity for Guess? Inc. However, management should closely monitor this ratio to ensure that asset utilization remains optimal and continues to support revenue growth.