Home Depot Inc (HD)
Fixed 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 | 159,514,000 | 154,596,000 | 149,165,000 | 143,700,000 | 144,992,000 | 153,122,000 | 161,252,000 | 160,799,000 | 158,920,000 | 151,835,000 | 147,791,000 | 149,406,000 | 157,367,000 | 160,444,000 | 160,480,000 | 157,327,000 | 149,254,000 | 147,166,000 | 149,376,000 | 154,775,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 26,154,000 | 32,806,000 | 25,735,000 | 33,018,000 | 25,879,000 | 25,674,000 | 32,572,000 | 25,631,000 | 31,763,000 | 25,240,000 | 31,379,000 | 25,166,000 | 31,146,000 | 31,167,000 | 25,199,000 |
| Fixed asset turnover | — | — | — | — | — | 5.85 | 4.92 | 6.25 | 4.81 | 5.87 | 5.76 | 4.59 | 6.14 | 5.05 | 6.36 | 5.01 | 5.93 | 4.73 | 4.79 | 6.14 |
January 31, 2025 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $159,514,000K ÷ $—K
= —
The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is using its fixed assets efficiently to generate sales.
Analyzing Home Depot Inc's fixed asset turnover ratio over the past few years, we can observe fluctuations in the ratio. The ratio ranged from a low of 4.59 to a high of 6.36 during the period covered by the data.
In January 2022, the fixed asset turnover ratio was 6.14, indicating that the company generated $6.14 in sales for every $1 invested in fixed assets. This high ratio suggests that Home Depot efficiently utilized its fixed assets to drive revenue.
Subsequently, there was a downward trend in the ratio, reaching a low of 4.73 in April 2022. This decline may indicate less effective utilization of fixed assets to generate sales during that period.
However, the ratio improved in the following quarters, with fluctuations between 4.59 and 6.25 until January 2024. Notably, the ratio was not available for the subsequent periods, indicating a lack of data.
Overall, the fluctuation in Home Depot's fixed asset turnover ratio suggests varying degrees of efficiency in utilizing its fixed assets to generate sales revenue. Investors and stakeholders may want to monitor this ratio over time to assess the company's operational efficiency and investment in fixed assets.
Peer comparison
Jan 31, 2025