Williams-Sonoma Inc (WSM)
Fixed asset turnover
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 7,711,550 | 7,528,270 | 8,006,540 | 8,071,880 | 8,265,180 | 7,848,850 | 7,432,520 | 7,334,320 | 7,933,750 | 8,524,220 | 8,854,180 | 9,291,300 | 8,975,760 | 8,413,910 | 8,112,570 | 8,421,030 | 8,784,520 | 8,940,830 | 8,997,940 | 8,445,250 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 1,013,190 | 2,262,240 | 1,026,820 | 2,269,330 | 1,036,410 | 1,050,030 | 2,351,830 | 1,065,380 | 2,286,150 | 1,009,090 | 2,148,030 | 942,460 | 2,044,520 | 2,053,540 | 920,773 |
| Fixed asset turnover | — | — | — | — | — | 7.75 | 3.29 | 7.14 | 3.50 | 8.22 | 8.43 | 3.95 | 8.42 | 3.68 | 8.04 | 3.92 | 9.32 | 4.37 | 4.38 | 9.17 |
January 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $7,711,550K ÷ $—K
= —
The fixed asset turnover ratio of Williams-Sonoma Inc over the past few years has shown fluctuations. The ratio is calculated by dividing net sales by average fixed assets, indicating how efficiently the company is utilizing its fixed assets to generate revenue.
In January 2023, the fixed asset turnover ratio was 8.42, indicating that the company generated $8.42 for every $1 of fixed assets invested. This suggests efficient use of fixed assets to generate sales.
However, the ratio decreased to 3.95 in January 2023, which could indicate a decrease in sales relative to fixed assets, possibly due to various factors such as lower sales or higher fixed asset investments.
The ratio improved to 8.43 in April 2023, showing efficient utilization of fixed assets. Subsequently, in July 2023, the ratio dropped to 3.50, indicating a decline in revenue generated per dollar of fixed assets, which might signal a shift in operational efficiency or asset utilization.
In October 2023, the ratio further decreased to 3.29, suggesting a possible need for Williams-Sonoma Inc to address the utilization of its fixed assets to improve revenue generation efficiency.
The company managed to improve the fixed asset turnover ratio to 7.75 in January 2024, demonstrating better utilization of fixed assets. However, the ratio is missing for subsequent periods, signaling potential data gaps or fluctuations in the company's financial reporting.
In conclusion, the fixed asset turnover ratio of Williams-Sonoma Inc has varied over time, indicating fluctuations in the efficiency of utilizing fixed assets to generate sales. It is essential for the company to consistently monitor and optimize its fixed asset utilization to enhance operational efficiency and profitability.
See also:
Williams-Sonoma Inc Net Fixed Asset Turnover (Quarterly Data)