Williams-Sonoma Inc (WSM)
Fixed asset turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,750,650 | 8,674,420 | 8,245,940 | 6,788,970 | 5,905,720 |
| Property, plant and equipment | US$ in thousands | 1,013,190 | 1,065,380 | 920,773 | 873,894 | 929,038 |
| Fixed asset turnover | 7.65 | 8.14 | 8.96 | 7.77 | 6.36 |
January 28, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,750,650K ÷ $1,013,190K
= 7.65
The fixed asset turnover ratio for Williams-Sonoma Inc has been fluctuating over the past five years. The trend indicates that the company has been effectively utilizing its fixed assets to generate revenue.
The highest fixed asset turnover ratio was observed in January 2022 at 8.96, indicating that the company generated $8.96 in sales for every $1 invested in fixed assets during that period. This suggests efficient management and utilization of fixed assets to drive revenue.
Although there was a slight decrease in the ratio in the following year (2023), it remained relatively high at 8.14, showcasing continued efficiency in asset utilization. The ratio then dipped to 7.65 in January 2024, indicating a decrease in sales generated per dollar of fixed assets.
Overall, the trend in the fixed asset turnover ratio for Williams-Sonoma Inc demonstrates a strong focus on maximizing the productivity of fixed assets to drive revenue generation. The fluctuations in the ratio over the years may be influenced by various factors such as changes in sales volume, asset efficiency, or strategic decisions regarding asset investments.