Home Depot Inc (HD)

Fixed asset turnover

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Revenue	US$ in thousands	159,514,000	152,669,000	152,669,000	157,403,000	157,403,000
Property, plant and equipment	US$ in thousands	—	—	26,154,000	32,572,000	25,631,000
Fixed asset turnover		—	—	5.84	4.83	6.14

January 31, 2025 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $159,514,000K ÷ $—K
= —

The fixed asset turnover ratio measures a company's efficiency in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

Analyzing Home Depot Inc's fixed asset turnover over the past few years:

- On January 29, 2023, the fixed asset turnover ratio was 6.14, indicating that Home Depot generated $6.14 in sales for every dollar invested in fixed assets. This suggests a high level of efficiency in asset utilization.

- By January 31, 2023, the fixed asset turnover ratio decreased to 4.83, possibly due to changes in asset utilization or sales performance. Although the ratio declined, it still indicates reasonable efficiency in generating sales from fixed assets.

- On January 28, 2024, the fixed asset turnover ratio improved to 5.84, signaling a better utilization of fixed assets compared to the previous period. This increase suggests enhanced efficiency in generating sales revenue.

- Notably, data for January 31, 2024, and January 31, 2025, are unavailable (denoted by "―"), making it challenging to assess the company's fixed asset turnover for those periods.

In summary, Home Depot Inc's fixed asset turnover ratio has shown fluctuations over the years, with periods of both improvement and decline. However, the company generally demonstrates a reasonable level of efficiency in utilizing its fixed assets to generate sales revenue, as evidenced by the ratios observed.