Home Depot Inc (HD)
Fixed asset turnover
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Nov 1, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 152,669,000 | 153,714,000 | 154,876,000 | 155,752,000 | 157,403,000 | 157,291,000 | 155,239,000 | 152,565,000 | 151,157,000 | 147,699,000 | 144,415,000 | 141,350,000 | 132,110,000 | 125,631,000 | 119,318,000 | 112,104,000 | 110,225,000 | 110,934,000 | 110,013,000 | 109,637,000 |
| Property, plant and equipment | US$ in thousands | 26,154,000 | 25,735,000 | 25,879,000 | 25,674,000 | 25,631,000 | 25,240,000 | 25,247,000 | 25,166,000 | 25,199,000 | 24,935,000 | 24,750,000 | 24,673,000 | 24,705,000 | 23,848,000 | 23,387,000 | 22,697,000 | 22,770,000 | 22,472,000 | 22,387,000 | 22,270,000 |
| Fixed asset turnover | 5.84 | 5.97 | 5.98 | 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 | 4.94 | 4.91 | 4.92 |
January 28, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $152,669,000K ÷ $26,154,000K
= 5.84
The fixed asset turnover ratio measures how efficiently a company generates revenue from its investments in fixed assets. For Home Depot Inc, the fixed asset turnover ratio has shown a relatively stable trend over the past few quarters, ranging from 4.84 to 6.23.
The ratio has generally been above 5, indicating that Home Depot is effectively utilizing its fixed assets to generate sales. A higher ratio suggests better efficiency in generating revenue from fixed assets.
It is notable that the ratio slightly decreased in the most recent quarters compared to the earlier periods. This trend may indicate potential changes in the company's asset management strategies or a shift in sales patterns.
Overall, Home Depot Inc's fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to drive sales revenue, which is a positive indicator of operational efficiency in the retail industry.
Peer comparison
Jan 28, 2024