Sally Beauty Holdings Inc (SBH)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,652,760 | 3,705,580 | 3,777,230 | 3,415,500 | 3,779,150 |
| Property, plant and equipment | US$ in thousands | 297,779 | 297,876 | 307,377 | 315,029 | 319,628 |
| Fixed asset turnover | 12.27 | 12.44 | 12.29 | 10.84 | 11.82 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,652,760K ÷ $297,779K
= 12.27
The fixed asset turnover ratio for Sally Beauty Holdings Inc has shown a consistent trend over the past five years. The ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets.
The ratio has remained relatively high, fluctuating between 11.16 and 12.81, with a peak of 12.81 in 2022. This suggests that the company has been successful in generating sales from its fixed assets during these years. However, it is crucial to note that the ratio experienced a slight decrease in 2023 to 12.52, indicating a potential decline in the efficiency of generating sales from fixed assets compared to the prior year.
In general, a high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. However, a declining trend may warrant further investigation into the company's operational efficiency and asset utilization strategies.
Peer comparison
Sep 30, 2023