Simply Good Foods Co (SMPL)

Fixed asset turnover

		Feb 24, 2024	Nov 25, 2023	Aug 26, 2023	May 27, 2023	Feb 25, 2023	Nov 26, 2022	Aug 27, 2022	May 28, 2022	Feb 26, 2022	Nov 27, 2021	Aug 28, 2021	May 29, 2021	Feb 27, 2021	Nov 28, 2020	Aug 29, 2020	May 30, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 25, 2019
Revenue (ttm)	US$ in thousands	1,239,906	1,221,199	1,212,260	1,167,626	1,162,029	1,166,378	1,146,988	1,130,420	1,094,438	1,025,803	974,051	944,406	883,763	887,277	816,641	733,539	657,906	554,605	523,758	492,836
Property, plant and equipment	US$ in thousands	22,701	23,830	24,861	24,414	—	62,468	18,157	66,061	66,744	67,532	16,584	13,377	34,181	35,876	11,850	38,914	39,080	38,975	2,456	2,460
Fixed asset turnover		54.62	51.25	48.76	47.83	—	18.67	63.17	17.11	16.40	15.19	58.73	70.60	25.86	24.73	68.91	18.85	16.83	14.23	213.26	200.34

February 24, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,239,906K ÷ $22,701K
= 54.62

The fixed asset turnover ratio for Simply Good Foods Co has fluctuated over the past few reporting periods, indicating varying efficiency in generating sales from its fixed assets. The ratio peaked at 213.26 in Nov 2019, reflecting a high level of productivity in utilizing its fixed assets to generate revenue. However, this was followed by a significant decline to 14.23 in Feb 2020, suggesting a decrease in efficiency in converting fixed assets into sales.

Since then, the company has shown improvements in its fixed asset turnover, with the ratio steadily increasing to 54.62 in Feb 2024. This upward trend indicates that Simply Good Foods Co has been able to enhance its utilization of fixed assets to drive sales growth over the recent periods.

Overall, the company's fixed asset turnover ratio demonstrates both strengths and areas for improvement in effectively utilizing its fixed assets to generate revenue. Continued monitoring and analysis of this ratio will be essential for assessing the company's operational efficiency and performance in the future.