Williams-Sonoma Inc (WSM)
Total 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 |
| Total assets | US$ in thousands | 5,301,610 | 4,968,340 | 5,211,670 | 5,159,980 | 5,273,550 | 5,273,550 | 4,883,770 | 4,883,770 | 4,571,810 | 4,571,810 | 4,471,040 | 4,663,020 | 4,663,020 | 4,594,010 | 4,594,010 | 4,319,170 | 4,210,710 | 4,210,710 | 4,625,620 | 4,625,620 |
| Total asset turnover | 1.45 | 1.52 | 1.54 | 1.56 | 1.57 | 1.49 | 1.52 | 1.50 | 1.74 | 1.86 | 1.98 | 1.99 | 1.92 | 1.83 | 1.77 | 1.95 | 2.09 | 2.12 | 1.95 | 1.83 |
January 31, 2025 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,711,550K ÷ $5,301,610K
= 1.45
The total asset turnover ratio measures how efficiently a company is utilizing its assets to generate revenue. Williams-Sonoma Inc's total asset turnover has fluctuated over the period provided. The ratio started at 1.83 in January 2022, increased to 2.12 by April 2022, but then decreased to 1.77 by October 2022. There was a subsequent increase to 1.92 in January 2023 and 1.99 in January 2023, followed by a slight decrease to 1.86 in July 2023, and a further decline to 1.50 in October 2023. This continued downward trend was observed in the following periods, with the ratio reaching 1.45 in January 2025.
Overall, the trend indicates fluctuations in Williams-Sonoma Inc's efficiency in utilizing its assets to generate revenue. A higher total asset turnover ratio generally indicates better asset utilization and efficiency in generating sales, while a lower ratio may suggest inefficiencies in asset management or challenges in generating revenue from those assets. The company may need to assess its asset management strategies and operational efficiency to improve this ratio and enhance overall performance.