Ollie's Bargain Outlet Hldg (OLLI)

Fixed asset turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	2,102,700	1,827,080	1,752,950	1,808,570	1,407,980
Property, plant and equipment	US$ in thousands	270,063	175,947	147,164	138,712	132,084
Fixed asset turnover		7.79	10.38	11.91	13.04	10.66

February 3, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,102,700K ÷ $270,063K
= 7.79

Fixed asset turnover is a financial ratio that measures a company's ability to generate sales from its investment in fixed assets. Ollie's Bargain Outlet Hldg has shown a decreasing trend in fixed asset turnover over the past five years.

From January 2020 to February 2024, the fixed asset turnover ratio has declined from 10.66 to 7.79. This indicates that the company has become less efficient in generating revenue from its fixed assets over time. A lower fixed asset turnover ratio may suggest that the company is either not effectively utilizing its fixed assets to generate sales or that its sales are not growing proportionally to its investment in fixed assets.

It is important for Ollie's Bargain Outlet Hldg to closely monitor and analyze the factors contributing to the decrease in fixed asset turnover in order to make strategic decisions to improve efficiency and profitability in the utilization of its fixed assets.