Helen of Troy Ltd (HELE)
Fixed asset turnover
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,951,730 | 2,033,190 | 2,213,270 | 2,085,990 | 1,694,540 |
| Property, plant and equipment | US$ in thousands | 336,646 | 351,793 | 205,378 | 136,535 | 132,107 |
| Fixed asset turnover | 5.80 | 5.78 | 10.78 | 15.28 | 12.83 |
February 29, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,951,730K ÷ $336,646K
= 5.80
Helen of Troy Ltd's fixed asset turnover has shown a fluctuating trend over the past five years. The ratio decreased slightly from 5.78 in 2023 to 5.80 in 2024. In 2022, the company achieved a high fixed asset turnover of 10.78, which declined in 2021 to 15.28. However, in 2020, the ratio improved to 12.83.
Overall, the fixed asset turnover indicates how efficiently the company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio suggests that the company is effectively employing its fixed assets to generate revenue. In contrast, a lower ratio could indicate underutilization of fixed assets or potential inefficiencies in the company's operations. Further analysis may be warranted to understand the factors contributing to the fluctuations in Helen of Troy Ltd's fixed asset turnover over the years.