Simply Good Foods Co (SMPL)

Fixed asset turnover

		Aug 31, 2024	May 25, 2024	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
Revenue (ttm)	US$ in thousands	1,331,588	1,252,300	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
Property, plant and equipment	US$ in thousands	24,830	22,037	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
Fixed asset turnover		53.63	56.83	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

August 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,331,588K ÷ $24,830K
= 53.63

The fixed asset turnover ratio for Simply Good Foods Co has exhibited fluctuations over the reported periods. It indicates the company's efficiency in generating sales revenue from its fixed assets. Generally, a higher fixed asset turnover ratio reflects better asset utilization.

From Nov 30, 2019, to Aug 27, 2022, the fixed asset turnover ranged from 14.23 to 63.17, with a notable improvement in asset efficiency during this period. However, the ratio declined to 15.19 by Feb 26, 2022, before rebounding to 56.83 by May 25, 2024. This uptrend continued until Aug 31, 2024, reaching 53.63.

The company managed to maintain a relatively high fixed asset turnover during most of the periods, demonstrating effective utilization of its fixed assets to drive sales. The occasional fluctuations may be influenced by changes in business operations, capital investments, or revenue performance. Monitoring this ratio can provide insights into the company's operational efficiency and asset management strategies.