Signet Jewelers Ltd (SIG)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,202,700 | 7,830,100 | 7,807,100 | 5,166,000 | 6,113,300 |
| Property, plant and equipment | US$ in thousands | 497,700 | 586,500 | 575,900 | 605,500 | 741,900 |
| Fixed asset turnover | 14.47 | 13.35 | 13.56 | 8.53 | 8.24 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,202,700K ÷ $497,700K
= 14.47
Signet Jewelers Ltd has demonstrated a consistent improvement in its fixed asset turnover ratio over the past five years, indicating a more efficient utilization of its fixed assets to generate sales. The fixed asset turnover ratio has increased from 8.24 in February 2020 to 14.47 in February 2024, reflecting a significant enhancement in operational efficiency and asset productivity.
This trend suggests that Signet Jewelers has been able to generate higher sales revenue relative to its investment in fixed assets. The company's ability to effectively utilize its fixed assets to drive sales growth is a positive indicator of operational effectiveness and management's ability to leverage its assets efficiently.
The consistent improvement in the fixed asset turnover ratio signifies the company's ongoing efforts to optimize its asset utilization, potentially through strategic investments, operational improvements, or cost management initiatives. This trend bodes well for the company's profitability and overall financial performance, as it indicates a higher return on investment in fixed assets over time.