Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
The analysis of the financial ratios over the reported periods reveals several observable trends and shifts in asset utilization and equity activity.
- Net Fixed Asset Turnover
- This ratio shows overall stability with a mild declining trend from around 3.05 in early 2018 to approximately 2.06 by April 2023. After an initial gradual decrease, it experienced a slight recovery around early 2021 before continuing its downward trend. This suggests a decrease in efficiency in generating sales from fixed assets over time.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- Starting from a similar level as the regular net fixed asset turnover in early 2018 (3.05), this metric drops more sharply, reaching 1.56 by April 2023. The decline is more pronounced indicating that when including operating leases and right-of-use assets, asset turnover efficiency is significantly lower. It reflects the impact of increased lease assets on the asset base relative to sales generation.
- Total Asset Turnover
- The total asset turnover ratio began close to 1.41 in early 2018 and gradually declined to roughly 0.63 by April 2023. Notably, the ratio remains around or slightly above 1.0 until early 2021 but drops significantly thereafter, which may indicate either a decrease in sales relative to total assets or growth in asset base not matched by proportional sales growth in recent periods.
- Equity Turnover
- The equity turnover ratio exhibits high volatility, with extreme spikes early in the period (e.g., 281.82 and 78.23 in mid and late 2017). Subsequently, the ratio reduces dramatically and stabilizes in lower single-digit values from early 2019 onward, fluctuating between approximately 2.87 and 5.43. The early spikes could be related to low equity base periods or extraordinary transactions, while the more stable and lower ratios in recent years suggest normalized turnover of equity.
In summary, the company’s efficiency in utilizing fixed and total assets to generate revenue has decreased over the analyzed timeframe, with a more pronounced effect seen when considering leased assets. The equity turnover ratio's early volatility has settled into a more stable but lower turnover level, indicating significant changes in equity utilization over time.
Net Fixed Asset Turnover
RH, net fixed asset turnover calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | 670,295) | 592,473) | 615,326) | 562,080) | ||||||||
| Property and equipment, net | 1,640,596) | 1,635,984) | 1,577,900) | 1,554,880) | 1,357,064) | 1,227,920) | 1,196,335) | 1,131,501) | 1,103,668) | 1,077,198) | 1,051,825) | 1,053,435) | 953,738) | 967,599) | 969,090) | 950,594) | 954,142) | 863,562) | 856,230) | 833,232) | 811,369) | 800,698) | 778,320) | 744,460) | 702,741) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 2.06 | 2.19 | 2.36 | 2.48 | 2.84 | 3.06 | 3.07 | 3.10 | 2.92 | 2.64 | 2.57 | 2.41 | 2.65 | 2.74 | 2.74 | 2.75 | 2.67 | 2.90 | 2.93 | 2.95 | 3.00 | 3.05 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.81 | 2.82 | 2.82 | 2.78 | 2.75 | 2.75 | 2.83 | 2.80 | 2.84 | 2.93 | 3.11 | 3.32 | 3.45 | 3.41 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 6.07 | 6.14 | 6.23 | 6.15 | 6.06 | 6.00 | 5.92 | 5.83 | 5.73 | 5.35 | 5.27 | 5.10 | 4.94 | 4.84 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 5.50 | 5.53 | 5.55 | 5.10 | 5.05 | 5.05 | 5.03 | 4.97 | 4.95 | 4.68 | 4.57 | 4.32 | 4.00 | 3.86 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 8.53 | 8.63 | 8.84 | 9.21 | 9.43 | 9.21 | 8.84 | 8.46 | 7.46 | 6.38 | 6.67 | 6.61 | 7.08 | 7.83 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Net fixed asset turnover
= (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
÷ Property and equipment, net
= (739,162 + 772,499 + 869,066 + 991,620)
÷ 1,640,596 = 2.06
2 Click competitor name to see calculations.
- Net Revenues Trend
- Net revenues exhibit notable variability across the periods analyzed. Initially, figures fluctuate between approximately 560 million and 670 million US dollars, with intermittent increases and decreases observed through early 2019. From mid-2019 to early 2020, revenues maintain a relatively high level, peaking close to 710 million US dollars before declining sharply to under 500 million in May 2020, likely reflecting external market disruptions at that time. Following this drop, a strong recovery ensues, with revenues surpassing 840 million US dollars by the end of 2020 and continuing to increase through 2021, reaching nearly 1 billion US dollars by the start of 2022. However, from early 2022 onward, a gradual descending trend is evident, with revenues decreasing from approximately 950 million to around 740 million US dollars by April 2023.
- Property and Equipment, Net
- The net value of property and equipment displays a steady upward trend throughout the reported quarters. Starting from about 700 million US dollars in April 2017, this asset base expands consistently, nearly doubling over the period analyzed. Notably, large increments are visible from mid-2021 onward, with assets reaching over 1.6 billion US dollars by April 2023. This steady growth suggests ongoing investment in fixed assets or capital expenditures increasing the company’s operational capacity or infrastructure during the timeline.
- Net Fixed Asset Turnover Ratio Analysis
- The net fixed asset turnover ratio, which reflects the efficiency of using property and equipment to generate revenues, shows a declining trend over the periods reported. Beginning at around 3.05 in early 2018, the ratio gradually decreases, moving downwards to approximately 2.06 by April 2023. This decrease indicates that although the company’s investment in fixed assets has grown substantially, the revenue generated per unit of fixed asset has diminished. This may imply that asset utilization efficiency has reduced over time or that recent investments have yet to contribute proportionately to revenue growth.
- Overall Insights
- The contrasting trends between increasing property and equipment values and decreasing asset turnover ratio suggest a shift towards greater capital intensity in the company’s operations. While revenues have shown resilience with periods of growth, particularly post-2020, recent declines in revenue alongside increasing asset bases could signal challenges in maintaining revenue growth momentum or capitalizing fully on new assets. The fluctuating revenue figures, coupled with progressive fixed asset expansion and declining efficiency in asset usage, underscore the importance of monitoring capital allocation effectiveness and revenue generation strategies moving forward.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
RH, net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | 670,295) | 592,473) | 615,326) | 562,080) | ||||||||
| Property and equipment, net | 1,640,596) | 1,635,984) | 1,577,900) | 1,554,880) | 1,357,064) | 1,227,920) | 1,196,335) | 1,131,501) | 1,103,668) | 1,077,198) | 1,051,825) | 1,053,435) | 953,738) | 967,599) | 969,090) | 950,594) | 954,142) | 863,562) | 856,230) | 833,232) | 811,369) | 800,698) | 778,320) | 744,460) | 702,741) | ||||||||
| Operating lease right-of-use assets | 528,010) | 527,246) | 536,452) | 540,396) | 544,797) | 551,045) | 551,731) | 553,834) | 541,841) | 456,164) | 405,776) | 404,508) | 392,934) | 410,904) | 415,912) | 421,001) | 432,212) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 2,168,606) | 2,163,230) | 2,114,352) | 2,095,276) | 1,901,861) | 1,778,965) | 1,748,066) | 1,685,335) | 1,645,509) | 1,533,362) | 1,457,601) | 1,457,943) | 1,346,672) | 1,378,503) | 1,385,002) | 1,371,595) | 1,386,354) | 863,562) | 856,230) | 833,232) | 811,369) | 800,698) | 778,320) | 744,460) | 702,741) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.56 | 1.66 | 1.76 | 1.84 | 2.03 | 2.11 | 2.10 | 2.08 | 1.96 | 1.86 | 1.85 | 1.74 | 1.88 | 1.92 | 1.92 | 1.90 | 1.84 | 2.90 | 2.93 | 2.95 | 3.00 | 3.05 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.09 | 2.08 | 2.07 | 2.04 | 2.03 | 2.03 | 2.10 | 2.09 | 2.13 | 2.17 | 2.30 | 2.51 | 2.61 | 2.56 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 4.78 | 4.83 | 4.95 | 4.95 | 4.90 | 4.85 | 4.79 | 4.70 | 4.63 | 4.31 | 4.29 | 4.14 | 3.96 | 3.89 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 4.58 | 4.60 | 4.62 | 4.17 | 4.15 | 4.15 | 4.12 | 4.14 | 4.11 | 3.90 | 3.79 | 3.59 | 3.31 | 3.20 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 3.34 | 3.36 | 3.38 | 3.45 | 3.47 | 3.44 | 3.19 | 3.02 | 2.66 | 2.29 | 2.38 | 2.38 | 2.58 | 2.90 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (739,162 + 772,499 + 869,066 + 991,620)
÷ 2,168,606 = 1.56
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues show a generally increasing trend over the observed periods, with some fluctuations. Starting around $562 million in April 2017, revenues exhibit periodic rises and dips. Noticeable dips occur around May 2018 and April 2020, corresponding to values of approximately $557 million and $483 million respectively. The decline in April 2020 is likely influenced by external factors affecting market conditions during that time. Following the dip, there is a recovery and continued growth, peaking near $1 billion by late 2021 and early 2022. However, from early 2022 onwards, net revenues begin to decline again, dropping to about $739 million by April 2023. This pattern points to significant variability, with strong growth phases punctuated by periods of revenue contraction.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- The value of property and equipment demonstrates a consistent upward trajectory throughout the timeline. Starting at approximately $703 million in April 2017, this asset base increases steadily and reaches over $2.16 billion by April 2023. This growth reflects continual investment in fixed assets and leasehold improvements or acquisitions. There is a noticeable acceleration in asset base growth starting mid-2018, with significant jumps aligned with increasing capital expenditures or acquisition activities. The steady increase in this asset category may suggest ongoing expansion or upgrading of facilities and operational infrastructure.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio, available from February 2018 onwards, initially shows a moderate level around 3.05, indicating relatively efficient use of fixed assets to generate revenues at that time. Over the subsequent quarters, there is a clear declining trend, dropping steadily from near 3 down to approximately 1.56 by April 2023. This declining ratio implies reduced efficiency in utilizing fixed assets to produce revenues. Despite expanding asset base, the return on assets measured as turnover is weakening, suggesting that new or existing assets are generating proportionally less revenue over time. This may indicate overinvestment in fixed assets relative to revenue growth or operational inefficiencies.
- Overall Insights
- The combined analysis points to a scenario of growing asset investment accompanied by fluctuating net revenues and declining asset utilization efficiency. While revenues have reached new highs during the period, they have not consistently kept pace with the rapid expansion in property and equipment. The diminished asset turnover ratio solidifies concerns about operational efficiency in transforming asset investments into revenue. The recent decline in revenues, coupled with a sustained increase in the asset base, may necessitate a strategic review of capital expenditures and operational effectiveness to improve asset utilization and stabilize revenue growth.
Total Asset Turnover
RH, total asset turnover calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | 670,295) | 592,473) | 615,326) | 562,080) | ||||||||
| Total assets | 5,319,830) | 5,309,289) | 5,883,715) | 5,831,447) | 5,887,937) | 5,540,470) | 5,420,025) | 3,467,152) | 3,237,317) | 2,898,313) | 2,679,250) | 2,506,409) | 2,429,893) | 2,445,694) | 2,362,013) | 2,387,808) | 2,545,832) | 1,806,034) | 1,843,325) | 1,814,107) | 1,748,961) | 1,732,866) | 1,801,566) | 1,819,409) | 1,948,386) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Total asset turnover1 | 0.63 | 0.68 | 0.63 | 0.66 | 0.65 | 0.68 | 0.68 | 1.01 | 1.00 | 0.98 | 1.01 | 1.01 | 1.04 | 1.08 | 1.12 | 1.09 | 1.00 | 1.39 | 1.36 | 1.36 | 1.39 | 1.41 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 1.11 | 1.09 | 1.14 | 1.13 | 1.13 | 1.11 | 1.17 | 1.16 | 1.16 | 1.12 | 1.20 | 1.23 | 1.30 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 2.04 | 2.06 | 2.05 | 2.05 | 1.99 | 2.10 | 2.02 | 2.04 | 1.95 | 1.87 | 1.88 | 1.88 | 1.91 | 2.15 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 2.09 | 2.22 | 2.04 | 2.04 | 1.92 | 2.16 | 1.93 | 1.92 | 1.84 | 1.92 | 1.68 | 1.55 | 1.62 | 1.83 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 1.75 | 1.76 | 1.73 | 1.83 | 1.80 | 1.71 | 1.52 | 1.50 | 1.25 | 1.04 | 1.06 | 1.27 | 1.45 | 1.73 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Total asset turnover
= (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
÷ Total assets
= (739,162 + 772,499 + 869,066 + 991,620)
÷ 5,319,830 = 0.63
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues exhibit considerable fluctuations over the observed periods. From April 2017 to February 2018, revenues generally increased from approximately 562 million to 670 million US dollars, illustrating a positive growth trend. This was followed by a pattern of volatility with periods of both decline and recovery. A significant drop is observed in May 2020, where revenues fell sharply to approximately 483 million, likely reflecting external challenges during that time. Subsequently, revenues surged to a peak of nearly 1 billion US dollars in late 2021 and early 2022, indicating a strong recovery and expansion phase. However, from the peak, there is a gradual decrease through the latest quarter, stabilizing around 739 million US dollars.
- Total Assets
- Total assets show a steady increase over the period, with some intervals of minor fluctuations. Beginning close to 1.95 billion US dollars in early 2017, assets slightly decreased until around early 2018, before starting a consistent upward trajectory. Notably, from mid-2019 onwards, total assets grew substantially, reaching over 5.4 billion US dollars by early 2022. The asset base remained relatively stable but slightly lower towards the most recent quarters, hovering around 5.3 billion US dollars. This upward trend in total assets suggests ongoing investment and asset accumulation.
- Total Asset Turnover
- The total asset turnover ratio presents a declining trend over the covered periods where data is available. Initially around 1.4 in early 2018, the ratio gradually decreased to values close to 1.0 by early 2021, reflecting a reduced efficiency in generating revenues from assets. A notable decline occurs from 2021 onwards, with the ratio dropping to below 0.7 in 2022 and 2023. This indicates a significant reduction in how effectively the company utilized its asset base to generate sales, despite the increase in total assets.
- Overall Insights
- The data suggests that while the company has expanded its asset base considerably, especially after 2019, its efficiency in using these assets to generate revenues has diminished. Net revenues show volatility with sharp declines and strong recoveries, particularly around mid-2020, possibly due to external economic factors. The declining asset turnover ratio alongside the growth in total assets may indicate challenges in asset management or capital intensity increasing faster than revenue growth. Management may need to focus on improving asset utilization to sustain growth and profitability.
Equity Turnover
RH, equity turnover calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | 670,295) | 592,473) | 615,326) | 562,080) | ||||||||
| Stockholders’ equity (deficit) | 839,386) | 784,661) | 1,293,947) | 1,220,244) | 1,341,790) | 1,170,277) | 1,021,375) | 836,858) | 594,462) | 447,026) | 296,869) | 128,491) | 19,132) | 18,651) | (63,220) | (177,918) | (247,373) | (22,962) | 32,020) | 146,061) | 8,642) | (7,336) | (25,276) | (46,784) | 622,778) | ||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||||||
| Equity turnover1 | 4.02 | 4.58 | 2.88 | 3.16 | 2.87 | 3.21 | 3.59 | 4.19 | 5.43 | 6.37 | 9.10 | 19.73 | 132.34 | 141.95 | — | — | — | — | 78.23 | 16.85 | 281.82 | — | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.73 | 2.85 | 3.03 | 3.19 | 3.40 | 3.52 | 3.65 | 3.70 | 3.57 | 3.40 | 3.80 | 3.86 | 4.06 | 4.13 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 430.25 | 100.77 | 121.18 | 655.02 | — | — | 142.70 | 69.80 | 80.86 | 40.05 | 81.84 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | 212.01 | 62.35 | 20.95 | 18.46 | 43.17 | 36.59 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 7.83 | 7.85 | 8.70 | 9.20 | 8.91 | 8.09 | 7.08 | 6.75 | 6.16 | 5.51 | 6.00 | 7.24 | 7.78 | 7.01 | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Equity turnover
= (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
÷ Stockholders’ equity (deficit)
= (739,162 + 772,499 + 869,066 + 991,620)
÷ 839,386 = 4.02
2 Click competitor name to see calculations.
- Net Revenues
- The net revenues demonstrate a generally increasing trend with notable fluctuations across the quarterly periods. Starting from $562,080 thousand in April 2017, revenues increased to peak values above $1 billion in parts of 2021 and early 2022, reflecting substantial growth over the analyzed timeframe. However, some quarters reveal a decline, such as the dip from $844,013 thousand in October 2020 to $739,162 thousand in April 2023, indicating volatility. The highest recorded quarterly revenues were $1,006,428 thousand in October 2021, showcasing peak operational performance during that period. Overall, the revenue pattern suggests expansion but with intermittent softness.
- Stockholders’ Equity (Deficit)
- Stockholders’ equity shows considerable variability, particularly in the earlier periods. Beginning at $622,778 thousand in April 2017, equity turned negative in the following quarters, reaching a low of negative $247,373 thousand in May 2019, indicating potential financial stress or large accumulated losses. From mid-2018 onwards, a recovery is observable, with equity turning positive and growing consistently up to $1,341,790 thousand by July 2022. Subsequent quarters show some decline, falling to $784,661 thousand and $839,386 thousand in early 2023. This indicates an overall improvement in equity position over time, although recent quarters suggest a slight contraction.
- Equity Turnover
- Equity turnover ratios are sporadically reported but suggest a declining trend after initially very high rates. In mid-2018, extremely high ratios such as 281.82 and 78.23 are observed, likely reflecting periods of low or negative equity impacting the ratio calculation. From 2020 onwards, the ratios stabilize and show a consistent downward pattern from 141.95 in mid-2020 to approximately 2.88 to 4.58 in early 2023. This decline may imply increasing equity relative to revenues or reduced efficiency in generating revenue from equity, coinciding with the improvement in stockholders’ equity levels observed.