RH (RH)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,836,370 | 3,539,340 | 3,668,920 | 2,777,900 | 2,564,930 |
| Property, plant and equipment | US$ in thousands | 1,685,860 | 1,635,980 | 1,227,920 | 1,077,200 | 967,599 |
| Fixed asset turnover | 1.68 | 2.16 | 2.99 | 2.58 | 2.65 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,836,370K ÷ $1,685,860K
= 1.68
Fixed asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Based on the data provided, RH's fixed asset turnover has shown some variability over the past five years. The trend indicates a decline in the ratio from 2.99 in January 2022 to 1.68 in February 2024. This suggests that RH's ability to generate sales from its fixed assets decreased during this period.
It is important to note that a low fixed asset turnover ratio may indicate underutilization of fixed assets, inefficient operations, or a decline in sales relative to the investment in fixed assets. Conversely, a high fixed asset turnover ratio may suggest efficient asset management and strong sales performance.
Further analysis is required to understand the underlying factors influencing the changes in RH's fixed asset turnover ratio and to assess the company's operational efficiency and asset utilization over time.
Peer comparison
Feb 3, 2024