Winnebago Industries Inc (WGO)
Fixed asset turnover
| Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,470,200 | 4,916,420 | 3,594,240 | 2,318,070 | 1,985,670 |
| Property, plant and equipment | US$ in thousands | 327,300 | 276,200 | 191,427 | 174,945 | 127,572 |
| Fixed asset turnover | 10.60 | 17.80 | 18.78 | 13.25 | 15.57 |
August 26, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,470,200K ÷ $327,300K
= 10.60
The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets. For Winnebago Industries, Inc., the trend in fixed asset turnover has shown some fluctuation over the past five years. In 2023, the fixed asset turnover ratio was 10.67, indicating that the company generated $10.67 in sales for every dollar invested in fixed assets. This represents a decrease from the previous year's ratio of 17.95.
The significant decline in fixed asset turnover may imply that the company's efficiency in utilizing its fixed assets to generate sales has decreased. However, it is essential to consider industry norms and the company's specific business circumstances before drawing definitive conclusions. Further qualitative and quantitative analysis is recommended to gain a comprehensive understanding of the factors driving these changes in the fixed asset turnover ratio.
Peer comparison
Aug 26, 2023