Sally Beauty Holdings Inc (SBH)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,713,300 | 3,652,760 | 3,705,580 | 3,777,230 | 3,415,500 |
| Property, plant and equipment | US$ in thousands | 269,872 | 297,779 | 297,876 | 307,377 | 315,029 |
| Fixed asset turnover | 13.76 | 12.27 | 12.44 | 12.29 | 10.84 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,713,300K ÷ $269,872K
= 13.76
Fixed asset turnover indicates how efficiently a company is utilizing its fixed assets to generate sales. The trend in Sally Beauty Holdings Inc's fixed asset turnover over the past five years has shown a consistent improvement, with the ratio increasing from 10.84 in 2020 to 13.76 in 2024. This suggests that the company is generating more sales revenue relative to its investment in fixed assets each year.
A high fixed asset turnover ratio like the one displayed by Sally Beauty Holdings Inc indicates efficient asset utilization, which could be attributed to effective management of fixed assets, improved operational efficiency, or successful sales and marketing strategies. This implies that the company is effectively utilizing its fixed assets to drive revenue growth. Investors and stakeholders may view this positively as it reflects operational effectiveness and potential for increased profitability in the future.
Peer comparison
Sep 30, 2024