Simply Good Foods Co (SMPL)

Fixed asset turnover

		Aug 26, 2023	Aug 27, 2022	Aug 28, 2021	Aug 29, 2020	Aug 31, 2019
Revenue	US$ in thousands	1,242,670	1,168,680	1,005,610	816,641	523,383
Property, plant and equipment	US$ in thousands	24,861	18,157	16,584	11,850	2,456
Fixed asset turnover		49.98	64.37	60.64	68.91	213.10

August 26, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,242,670K ÷ $24,861K
= 49.98

The fixed asset turnover of Simply Good Foods Co has gradually decreased over the past five years, from 213.10 in 2019 to 49.98 in 2023. This indicates a decreasing efficiency in generating sales from fixed assets. A high fixed asset turnover ratio is generally preferred as it suggests effective utilization of fixed assets to generate revenue. The declining trend in this ratio may warrant further investigation into the company's asset management and operational efficiency.