Home Depot Inc (HD)
Total asset turnover
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 152,669,000 | 157,403,000 | 151,157,000 | 132,110,000 | 110,225,000 |
| Total assets | US$ in thousands | 76,530,000 | 76,445,000 | 71,876,000 | 70,581,000 | 51,236,000 |
| Total asset turnover | 1.99 | 2.06 | 2.10 | 1.87 | 2.15 |
January 28, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $152,669,000K ÷ $76,530,000K
= 1.99
The total asset turnover ratio for Home Depot Inc has shown some fluctuations over the past five years. The ratio ranged from 1.87 to 2.15 during this period. A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets, which reflects efficient asset utilization.
In the most recent year, the total asset turnover ratio was 1.99, indicating a slight decrease from the previous year's ratio of 2.06. This decline may suggest a decrease in the company's efficiency in generating sales from its assets.
Overall, Home Depot Inc has maintained relatively strong asset turnover performance, with ratios consistently above 1.5, demonstrating that the company effectively utilizes its assets to generate revenue. However, it would be beneficial for the company to closely monitor this ratio to ensure continued efficiency in utilizing its assets in generating sales.
Peer comparison
Jan 28, 2024