Grocery Outlet Holding Corp (GO)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,943,260 | 3,558,750 | 3,066,320 | 3,116,180 | 2,508,820 |
| Property, plant and equipment | US$ in thousands | 642,462 | 560,746 | 499,387 | 433,652 | 356,614 |
| Fixed asset turnover | 6.14 | 6.35 | 6.14 | 7.19 | 7.04 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,943,260K ÷ $642,462K
= 6.14
The fixed asset turnover ratio for Grocery Outlet Holding Corp has shown a relatively stable trend over the past five years, ranging from 6.14 in 2021 to 7.19 in 2020. This ratio measures how efficiently the company is generating revenue from its investment in fixed assets.
A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales. In the case of Grocery Outlet Holding Corp, the ratios consistently above 6 suggest that the company has been efficient in generating sales revenue relative to its investment in fixed assets.
While the declining trend in the most recent years may indicate a slight decrease in efficiency in utilizing fixed assets, the ratios still remain relatively high, reflecting the company's ability to effectively manage its fixed assets to generate sales. It is important for management to continue monitoring this ratio to ensure optimal utilization of fixed assets in future operations.
Peer comparison
Dec 31, 2023