Kroger Company (KR)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 149,598,000 | 147,723,000 | 137,317,000 | 131,954,000 | 121,683,000 |
| Property, plant and equipment | US$ in thousands | 23,259,000 | 22,708,000 | 22,264,000 | 21,542,000 | 21,871,000 |
| Fixed asset turnover | 6.43 | 6.51 | 6.17 | 6.13 | 5.56 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $149,598,000K ÷ $23,259,000K
= 6.43
Fixed asset turnover measures a company's efficiency in generating sales 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.
Kroger Company's fixed asset turnover has shown a generally increasing trend over the past five years, ranging from 5.56 in February 2020 to 6.43 in February 2024. This indicates that Kroger has been progressively improving its ability to generate sales from its fixed assets.
The consistent high values of fixed asset turnover, with figures mostly above 6, suggest that Kroger is efficiently utilizing its fixed assets to generate sales revenue. This could be a result of effective asset management or operational efficiency within the company.
Overall, the trend in Kroger's fixed asset turnover ratio reflects a positive performance in terms of utilizing its fixed assets to generate sales, indicating good efficiency and operational effectiveness in the company.
Peer comparison
Feb 3, 2024