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)
TJX Cos. Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
The investment activity ratios exhibit a general pattern of initial improvement peaking between early and mid-2022, followed by a period of gradual decline or stabilization through August 2026. This suggests a phase of high asset productivity that has since normalized or diminished.
- Net Fixed Asset Turnover
- A significant upward trend is observed from May 2021 (7.46) to a peak of 9.43 in April 2022. Following this peak, a consistent downward trajectory is evident, with the ratio declining to 7.28 by August 2026. This indicates a reduction in the efficiency of generating revenue from net fixed assets over the long term.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This metric shows greater stability compared to the standard fixed asset turnover. After an initial increase from 2.66 in May 2021 to a peak of 3.47 in April 2022, the ratio remains within a relatively tight range, concluding at 3.16 in August 2026. The lower volatility suggests that when right-of-use assets are included, the asset base's productivity is more consistent.
- Total Asset Turnover
- An overall improvement in total asset efficiency is noted in the first half of the period, rising from 1.25 in May 2021 to a peak of 1.85 in May 2024. Subsequently, the ratio exhibits a slight contraction, stabilizing between 1.68 and 1.70 in the final quarters. This indicates that while overall asset utilization improved significantly from 2021 levels, it has reached a plateau.
- Equity Turnover
- The equity turnover ratio experienced a sharp increase, peaking at 9.20 in July 2022. Since that peak, a steady and prolonged decline has been observed, with the ratio falling to 5.86 by August 2026. This trend may suggest that the growth in the equity base has outpaced the growth in sales, leading to lower turnover of shareholders' equity.
AI Ask an analyst for more
Net Fixed Asset Turnover
TJX Cos. Inc., net fixed asset turnover calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Net property at cost | 8,567) | 8,447) | 8,220) | 7,926) | 7,775) | 7,554) | 7,346) | 7,136) | 6,968) | 6,622) | 6,571) | 6,262) | 6,166) | 5,899) | 5,783) | 5,573) | 5,390) | 5,289) | 5,271) | 5,165) | 5,107) | 5,068) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 7.28 | 7.29 | 7.34 | 7.44 | 7.45 | 7.54 | 7.67 | 7.91 | 7.98 | 8.29 | 8.25 | 8.36 | 8.31 | 8.53 | 8.63 | 8.84 | 9.21 | 9.43 | 9.21 | 8.84 | 8.46 | 7.46 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.74 | 1.87 | 2.01 | 2.13 | 2.25 | 2.38 | 2.52 | 2.61 | 2.74 | 2.81 | 2.82 | 2.82 | 2.78 | 2.75 | 2.75 | 2.83 | 2.80 | 2.84 | |||||||
| Home Depot Inc. | 6.01 | 5.96 | 5.88 | 6.00 | 6.14 | 6.08 | 5.97 | 5.82 | 5.71 | 5.84 | 5.84 | 5.97 | 5.98 | 6.07 | 6.14 | 6.23 | 6.15 | 6.06 | 6.00 | 5.92 | 5.83 | 5.73 | |||||||
| Lowe’s Cos. Inc. | 4.95 | 4.84 | 4.70 | 4.60 | 4.72 | 4.72 | 4.74 | 4.76 | 4.80 | 4.87 | 4.89 | 5.15 | 5.37 | 5.50 | 5.53 | 5.55 | 5.10 | 5.05 | 5.05 | 5.03 | 4.97 | 4.95 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q2 2027 Calculation
Net fixed asset turnover
= (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
÷ Net property at cost
= (15,180 + 14,323 + 17,743 + 15,117)
÷ 8,567 = 7.28
2 Click competitor name to see calculations.
The analysis of net fixed asset turnover reveals a distinct two-phase trajectory characterized by an initial period of efficiency gains followed by a prolonged period of gradual decline.
- Asset Utilization Trends
- The net fixed asset turnover ratio experienced an upward trend during the first year of the period, starting at 7.46 in May 2021 and peaking at 9.43 in April 2022. This indicates a period where net sales growth significantly outpaced the expansion of the fixed asset base, resulting in higher productivity per unit of investment.
- Long-term Efficiency Compression
- Following the peak in April 2022, the turnover ratio entered a consistent downward trend, declining to 7.28 by August 2026. This contraction suggests that the growth in net sales did not keep pace with the accelerated rate of investment in fixed assets over the subsequent four years.
- Capital Investment and Sales Correlation
- Net property at cost grew monotonically from 5,068 million US dollars in May 2021 to 8,567 million US dollars in August 2026. While net sales also increased over the same period, ending at 15,180 million US dollars, the steady accumulation of assets expanded the denominator of the turnover ratio more aggressively than sales expanded the numerator, leading to the observed decline in the ratio.
- Seasonal Volatility and Ratio Stability
- Net sales exhibited recurring seasonal peaks, typically occurring in the January and February quarters. While these spikes provided temporary boosts to the turnover ratio, they were insufficient to reverse the long-term downward trend, as the growth in the fixed asset base remained steady and cumulative regardless of seasonal sales cycles.
AI Ask an analyst for more
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
TJX Cos. Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Net property at cost | 8,567) | 8,447) | 8,220) | 7,926) | 7,775) | 7,554) | 7,346) | 7,136) | 6,968) | 6,622) | 6,571) | 6,262) | 6,166) | 5,899) | 5,783) | 5,573) | 5,390) | 5,289) | 5,271) | 5,165) | 5,107) | 5,068) | |||||||
| Operating lease right of use assets | 11,154) | 11,025) | 10,330) | 10,039) | 9,978) | 9,924) | 9,641) | 9,570) | 9,513) | 9,499) | 9,396) | 9,289) | 9,406) | 9,177) | 9,086) | 8,986) | 8,987) | 9,067) | 8,854) | 9,144) | 9,183) | 9,122) | |||||||
| Net property at cost (including operating lease, right-of-use asset) | 19,721) | 19,472) | 18,550) | 17,965) | 17,753) | 17,478) | 16,987) | 16,706) | 16,481) | 16,121) | 15,967) | 15,551) | 15,572) | 15,076) | 14,869) | 14,558) | 14,376) | 14,356) | 14,125) | 14,309) | 14,291) | 14,189) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.16 | 3.16 | 3.25 | 3.28 | 3.26 | 3.26 | 3.32 | 3.38 | 3.37 | 3.41 | 3.40 | 3.36 | 3.29 | 3.34 | 3.36 | 3.38 | 3.45 | 3.47 | 3.44 | 3.19 | 3.02 | 2.66 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.44 | 1.53 | 1.62 | 1.69 | 1.76 | 1.85 | 1.94 | 1.97 | 2.05 | 2.09 | 2.08 | 2.07 | 2.04 | 2.03 | 2.03 | 2.10 | 2.09 | 2.13 | |||||||
| Home Depot Inc. | 4.52 | 4.48 | 4.42 | 4.53 | 4.64 | 4.59 | 4.52 | 4.41 | 4.31 | 4.48 | 4.49 | 4.69 | 4.69 | 4.78 | 4.83 | 4.95 | 4.95 | 4.90 | 4.85 | 4.79 | 4.70 | 4.63 | |||||||
| Lowe’s Cos. Inc. | 4.05 | 3.94 | 3.81 | 3.72 | 3.87 | 3.88 | 3.91 | 3.92 | 3.94 | 4.00 | 4.04 | 4.26 | 4.43 | 4.58 | 4.60 | 4.62 | 4.17 | 4.15 | 4.15 | 4.12 | 4.14 | 4.11 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q2 2027 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
÷ Net property at cost (including operating lease, right-of-use asset)
= (15,180 + 14,323 + 17,743 + 15,117)
÷ 19,721 = 3.16
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a period of rapid efficiency gains followed by a phase of stabilization and a subsequent gradual decline in asset productivity.
- Net Fixed Asset Turnover Trend
- A significant increase in asset turnover occurred between May 2021 and January 2022, during which the ratio rose from 2.66 to 3.44. This upward trajectory indicates a period of rapid optimization of fixed assets and right-of-use assets relative to revenue generation. Following this peak, the ratio entered a period of relative stability, fluctuating primarily between 3.25 and 3.47. However, a gradual downward trend is observable from November 2024 through August 2026, with the ratio concluding at 3.16, suggesting that the expansion of the asset base has begun to outpace the growth in net sales.
- Fixed Asset Investment Growth
- Net property at cost, inclusive of operating lease right-of-use assets, exhibited a consistent and steady upward trajectory throughout the entire period. The asset base grew from 14,189 million in May 2021 to 19,721 million by August 2026. This continuous expansion reflects a sustained long-term investment strategy in physical infrastructure and leased properties to support operational scale.
- Revenue and Asset Correlation
- Net sales demonstrated overall growth and distinct seasonal peaks, particularly during the first quarter of each year. While the increase in sales supported the initial rise in turnover, the more recent decline in the turnover ratio indicates a decrease in the marginal efficiency of new investments. The widening gap between the growth rate of net property and the growth rate of net sales has resulted in a lower turnover ratio in the final quarters of the analyzed period.
AI Ask an analyst for more
Total Asset Turnover
TJX Cos. Inc., total asset turnover calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Total assets | 37,115) | 36,158) | 35,767) | 35,188) | 32,885) | 31,858) | 31,749) | 32,436) | 30,555) | 29,679) | 29,747) | 30,351) | 28,922) | 28,681) | 28,349) | 28,428) | 27,091) | 27,710) | 28,461) | 30,071) | 28,783) | 30,301) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | 1.68 | 1.70 | 1.69 | 1.68 | 1.76 | 1.79 | 1.78 | 1.74 | 1.82 | 1.85 | 1.82 | 1.72 | 1.77 | 1.75 | 1.76 | 1.73 | 1.83 | 1.80 | 1.71 | 1.52 | 1.50 | 1.25 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.71 | 0.81 | 0.88 | 0.95 | 0.98 | 1.01 | 1.02 | 1.06 | 1.09 | 1.11 | 1.09 | 1.14 | 1.13 | 1.13 | 1.11 | 1.17 | 1.16 | 1.16 | |||||||
| Home Depot Inc. | 1.55 | 1.54 | 1.57 | 1.56 | 1.65 | 1.64 | 1.66 | 1.59 | 1.57 | 1.92 | 1.99 | 2.03 | 2.03 | 2.04 | 2.06 | 2.05 | 2.05 | 1.99 | 2.10 | 2.02 | 2.04 | 1.95 | |||||||
| Lowe’s Cos. Inc. | 1.62 | 1.61 | 1.59 | 1.58 | 1.79 | 1.83 | 1.94 | 1.87 | 1.87 | 1.88 | 2.07 | 2.12 | 2.09 | 2.09 | 2.22 | 2.04 | 2.04 | 1.92 | 2.16 | 1.93 | 1.92 | 1.84 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q2 2027 Calculation
Total asset turnover
= (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
÷ Total assets
= (15,180 + 14,323 + 17,743 + 15,117)
÷ 37,115 = 1.68
2 Click competitor name to see calculations.
The total asset turnover ratio demonstrates a trajectory characterized by an initial surge in operational efficiency, a prolonged period of stability, and a subsequent gradual decline as the asset base expanded.
- Initial Efficiency Gains
- Between May 2021 and April 2022, a significant upward trend is observed, with the total asset turnover ratio rising from 1.25 to 1.80. This indicates a rapid improvement in the capacity to generate net sales relative to the total assets employed.
- Operational Stability
- From April 2022 through February 2024, the ratio remained relatively consolidated, fluctuating within a narrow range between 1.72 and 1.85. This stability suggests that net sales grew in approximate proportion to the asset base during this interval, maintaining a consistent level of asset productivity.
- Asset Base Expansion and Ratio Compression
- Starting in February 2024, a slight downward trend emerges, with the ratio concluding at 1.68 by August 2026. This movement correlates with a substantial increase in total assets, which grew from 29,747 million in February 2024 to 37,115 million by August 2026. The resulting decline in the turnover ratio indicates that the expansion of the asset base has outpaced the growth in net sales during the most recent periods.
AI Ask an analyst for more
Equity Turnover
TJX Cos. Inc., equity turnover calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Shareholders’ equity | 10,651) | 10,403) | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | 5.86 | 5.92 | 5.92 | 6.30 | 6.53 | 6.70 | 6.72 | 6.90 | 7.15 | 7.32 | 7.42 | 7.66 | 7.75 | 7.83 | 7.85 | 8.70 | 9.20 | 8.91 | 8.09 | 7.08 | 6.75 | 6.16 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.41 | 1.68 | 1.74 | 1.87 | 2.01 | 2.13 | 2.23 | 2.39 | 2.56 | 2.73 | 2.85 | 3.03 | 3.19 | 3.40 | 3.52 | 3.65 | 3.70 | 3.57 | |||||||
| Home Depot Inc. | 10.18 | 12.01 | 12.85 | 13.72 | 15.48 | 20.48 | 24.02 | 26.72 | 34.41 | 83.42 | 146.23 | 107.49 | 116.01 | 430.25 | 100.77 | 121.18 | 655.02 | — | — | 142.70 | 69.80 | 80.86 | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 212.01 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q2 2027 Calculation
Equity turnover
= (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
÷ Shareholders’ equity
= (15,180 + 14,323 + 17,743 + 15,117)
÷ 10,651 = 5.86
2 Click competitor name to see calculations.
The financial performance from May 2021 through August 2026 is characterized by steady growth in net sales and a substantial expansion of the shareholders' equity base, which collectively resulted in a long-term decline in the equity turnover ratio following a peak in mid-2022.
- Net Sales Trends
- Net sales exhibited a general upward trajectory, increasing from 10,087 million USD in May 2021 to 15,180 million USD by August 2026. The revenue stream shows consistent seasonal volatility, with recurring peaks observed during the January/February and October/November periods, indicating strong cyclical demand.
- Shareholders' Equity Evolution
- The equity base underwent two distinct phases. An initial period of fluctuation and moderate decline occurred between May 2021 and July 2022, where equity dropped from 6,139 million USD to a low of 5,397 million USD. This was followed by a period of sustained and aggressive growth, with shareholders' equity climbing steadily to reach 10,651 million USD by August 2026.
- Equity Turnover Dynamics
- The equity turnover ratio initially rose, peaking at 9.20 in July 2022, coinciding with the period of lowest shareholders' equity. Subsequent to this peak, a consistent downward trend is observed, with the ratio declining in nearly every consecutive quarter to reach 5.86 by August 2026. This decline indicates that the growth in the company's equity base significantly outpaced the growth in net sales during the latter half of the analyzed period.
- Asset Utilization Insight
- The inverse correlation between the expanding equity base and the diminishing turnover ratio suggests a reduction in the efficiency of equity utilization to generate revenue. While the company scaled its overall operations, the increase in retained earnings or contributed capital expanded the denominator of the turnover calculation more rapidly than the top-line sales growth could compensate.
AI Ask an analyst for more