Signet Jewelers Ltd (SIG)
Fixed asset turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,712,300 | 7,202,700 | 7,830,100 | 7,807,100 | 5,166,000 |
| Property, plant and equipment | US$ in thousands | 506,500 | 497,700 | 586,500 | 575,900 | 605,500 |
| Fixed asset turnover | 13.25 | 14.47 | 13.35 | 13.56 | 8.53 |
February 1, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,712,300K ÷ $506,500K
= 13.25
Signet Jewelers Ltd has shown a consistent improvement in its fixed asset turnover ratio over the years, indicating a more efficient utilization of its fixed assets to generate sales revenue. The ratio has increased from 8.53 in January 30, 2021, to 13.25 in February 1, 2025. This upward trend suggests that Signet Jewelers has been able to generate more sales relative to its investment in fixed assets.
The company's fixed asset turnover ratio peaked at 14.47 on February 3, 2024, which implies that Signet Jewelers was able to generate $14.47 of revenue for every dollar invested in fixed assets during that period. This signifies a high level of efficiency and effectiveness in utilizing its fixed assets.
Overall, the consistent improvement in Signet Jewelers' fixed asset turnover ratio reflects positively on the company's operational efficiency and management of its fixed asset base. It indicates that the company has been able to maximize the productivity of its fixed assets in generating revenue over the years.