Helen of Troy Ltd (HELE)
Fixed asset turnover
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,951,649 | 1,945,114 | 1,954,029 | 1,988,120 | 2,032,319 | 2,141,123 | 2,217,356 | 2,177,293 | 2,210,480 | 2,138,035 | 2,151,168 | 2,207,303 | 2,086,058 | 2,022,215 | 1,859,374 | 1,742,097 | 1,698,141 | 1,640,619 | 1,596,759 | 1,576,773 |
| Property, plant and equipment | US$ in thousands | 336,646 | 335,302 | 336,349 | 354,195 | 351,793 | 335,234 | 306,340 | 281,008 | 205,378 | 165,061 | 149,738 | 134,450 | 136,535 | 135,795 | 137,024 | 133,375 | 132,107 | 131,179 | 131,164 | 130,058 |
| Fixed asset turnover | 5.80 | 5.80 | 5.81 | 5.61 | 5.78 | 6.39 | 7.24 | 7.75 | 10.76 | 12.95 | 14.37 | 16.42 | 15.28 | 14.89 | 13.57 | 13.06 | 12.85 | 12.51 | 12.17 | 12.12 |
February 29, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,951,649K ÷ $336,646K
= 5.80
The fixed asset turnover ratio for Helen of Troy Ltd has been relatively stable over the past two years, ranging from 5.61 to 12.95. The ratio measures how effectively the company is generating sales from its fixed assets. A higher ratio indicates that the company is generating more sales for each dollar invested in fixed assets.
In the most recent period, the fixed asset turnover was 5.80, suggesting that the company generated $5.80 in sales for every dollar invested in fixed assets. This indicates efficient utilization of fixed assets to generate revenue.
It is worth noting that there has been a gradual decrease in the fixed asset turnover ratio over the past few quarters, from a high of 16.42 in the first quarter of 2021 to 5.80 in the most recent quarter. This could signify a change in the company's asset utilization efficiency or changes in its business operations that affect fixed asset turnover.
Overall, while the fixed asset turnover ratio for Helen of Troy Ltd has fluctuated over the past few years, the company has generally maintained a relatively high level of efficiency in generating sales from its fixed assets. This ratio will be essential to monitor in future periods to assess any ongoing trends in asset utilization efficiency.