Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
RH, long-term (investment) activity ratios
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | RH net fixed asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | RH net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | RH total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | RH equity turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Net Fixed Asset Turnover
RH, net fixed asset turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | 3,590,477) | 3,758,820) | 2,848,626) | 2,647,437) | 2,505,653) | 2,440,174) | |
| Property and equipment, net | 1,635,984) | 1,227,920) | 1,077,198) | 967,599) | 863,562) | 800,698) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 2.19 | 3.06 | 2.64 | 2.74 | 2.90 | 3.05 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 2.82 | 2.75 | 2.93 | 3.41 | 3.86 | — | |
| Home Depot Inc. | 6.14 | 6.00 | 5.35 | 4.84 | 4.84 | — | |
| Lowe’s Cos. Inc. | 5.53 | 5.05 | 4.68 | 3.86 | 3.87 | — | |
| TJX Cos. Inc. | 8.63 | 9.21 | 6.38 | 7.83 | 7.42 | — | |
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.47 | 3.43 | 3.46 | 3.82 | 4.20 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Discretionary | 3.50 | 3.47 | 3.31 | 3.37 | 3.71 | — | |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Net fixed asset turnover = Net revenues ÷ Property and equipment, net
= 3,590,477 ÷ 1,635,984 = 2.19
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | RH net fixed asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
RH, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | 3,590,477) | 3,758,820) | 2,848,626) | 2,647,437) | 2,505,653) | 2,440,174) | |
| Property and equipment, net | 1,635,984) | 1,227,920) | 1,077,198) | 967,599) | 863,562) | 800,698) | |
| Operating lease right-of-use assets | 527,246) | 551,045) | 456,164) | 410,904) | —) | —) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 2,163,230) | 1,778,965) | 1,533,362) | 1,378,503) | 863,562) | 800,698) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.66 | 2.11 | 1.86 | 1.92 | 2.90 | 3.05 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Amazon.com Inc. | 2.08 | 2.03 | 2.17 | 2.56 | 2.87 | — | |
| Home Depot Inc. | 4.83 | 4.85 | 4.31 | 3.89 | 4.84 | — | |
| Lowe’s Cos. Inc. | 4.60 | 4.15 | 3.90 | 3.20 | 3.87 | — | |
| TJX Cos. Inc. | 3.36 | 3.44 | 2.29 | 2.90 | 7.42 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 2.55 | 2.52 | 2.55 | 2.83 | 3.47 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Discretionary | 2.68 | 2.66 | 2.51 | 2.57 | 3.13 | — | |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 3,590,477 ÷ 2,163,230 = 1.66
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | RH net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Total Asset Turnover
RH, total asset turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | 3,590,477) | 3,758,820) | 2,848,626) | 2,647,437) | 2,505,653) | 2,440,174) | |
| Total assets | 5,309,289) | 5,540,470) | 2,898,313) | 2,445,694) | 1,806,034) | 1,732,866) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 0.68 | 0.68 | 0.98 | 1.08 | 1.39 | 1.41 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 1.09 | 1.11 | 1.12 | 1.20 | 1.25 | — | |
| Home Depot Inc. | 2.06 | 2.10 | 1.87 | 2.15 | 2.46 | — | |
| Lowe’s Cos. Inc. | 2.22 | 2.16 | 1.92 | 1.83 | 2.07 | — | |
| TJX Cos. Inc. | 1.76 | 1.71 | 1.04 | 1.73 | 2.72 | — | |
| Total Asset Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.30 | 1.33 | 1.27 | 1.40 | 1.57 | — | |
| Total Asset Turnover, Industry | |||||||
| Consumer Discretionary | 0.97 | 0.96 | 0.88 | 0.84 | 0.94 | — | |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 3,590,477 ÷ 5,309,289 = 0.68
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | RH total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Equity Turnover
RH, equity turnover calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | 3,590,477) | 3,758,820) | 2,848,626) | 2,647,437) | 2,505,653) | 2,440,174) | |
| Stockholders’ equity (deficit) | 784,661) | 1,170,277) | 447,026) | 18,651) | (22,962) | (7,336) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 4.58 | 3.21 | 6.37 | 141.95 | — | — | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 2.85 | 3.52 | 3.40 | 4.13 | 4.52 | — | |
| Home Depot Inc. | 100.77 | — | 40.05 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 62.35 | 36.59 | 19.57 | — | |
| TJX Cos. Inc. | 7.85 | 8.09 | 5.51 | 7.01 | 7.72 | — | |
| Equity Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.50 | 5.57 | 4.86 | 6.21 | 7.25 | — | |
| Equity Turnover, Industry | |||||||
| Consumer Discretionary | 3.86 | 4.21 | 3.74 | 4.82 | 5.84 | — | |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).
1 2023 Calculation
Equity turnover = Net revenues ÷ Stockholders’ equity (deficit)
= 3,590,477 ÷ 784,661 = 4.58
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | RH equity turnover ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |