Winnebago Industries Inc (WGO)
Fixed asset turnover
| Aug 31, 2024 | Aug 26, 2023 | Aug 27, 2022 | Aug 28, 2021 | Aug 29, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,973,500 | 3,470,200 | 4,916,420 | 3,594,240 | 2,318,070 |
| Property, plant and equipment | US$ in thousands | 338,900 | 327,300 | 276,200 | 191,427 | 174,945 |
| Fixed asset turnover | 8.77 | 10.60 | 17.80 | 18.78 | 13.25 |
August 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,973,500K ÷ $338,900K
= 8.77
The fixed asset turnover ratio for Winnebago Industries Inc has shown a declining trend over the past five years, as evidenced by the figures presented in the table. The ratio has decreased from 13.25 in 2020 to 8.77 in 2024. This indicates that the company is generating less revenue for each dollar invested in fixed assets over time.
A high fixed asset turnover ratio indicates that a company is able to generate more sales from its fixed assets, which is a favorable sign of operational efficiency. Conversely, a declining fixed asset turnover ratio may suggest potential inefficiencies in asset utilization or decreased sales relative to the value of fixed assets.
It is important for Winnebago Industries Inc to further investigate the reasons behind the declining trend in fixed asset turnover ratio and take necessary actions to improve asset utilization and revenue generation from fixed assets. This analysis can help the company optimize its operational efficiency and financial performance over the long term.
Peer comparison
Aug 31, 2024