RH (RH)
Fixed asset turnover
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,836,374 | 3,120,032 | 3,261,556 | 3,447,058 | 3,540,792 | 3,448,343 | 3,584,715 | 3,614,984 | 3,668,919 | 3,610,126 | 3,464,121 | 3,200,155 | 2,834,489 | 2,687,029 | 2,534,679 | 2,531,911 | 2,755,530 | 2,761,445 | 2,720,477 | 2,654,761 |
| Property, plant and equipment | US$ in thousands | 1,685,860 | 1,665,480 | 1,655,330 | 1,640,600 | 1,635,980 | 1,577,900 | 1,554,880 | 1,357,060 | 1,227,920 | 1,196,340 | 1,131,500 | 1,103,670 | 1,077,200 | 1,051,820 | 1,053,440 | 953,738 | 967,599 | 969,090 | 950,594 | 954,142 |
| Fixed asset turnover | 1.68 | 1.87 | 1.97 | 2.10 | 2.16 | 2.19 | 2.31 | 2.66 | 2.99 | 3.02 | 3.06 | 2.90 | 2.63 | 2.55 | 2.41 | 2.65 | 2.85 | 2.85 | 2.86 | 2.78 |
February 3, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,836,374K ÷ $1,685,860K
= 1.68
The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that a company is utilizing its fixed assets more effectively to generate sales.
Analyzing the fixed asset turnover of RH over the past 20 financial periods reveals a generally increasing trend, starting from 1.68 in May 2019 and reaching a peak of 3.06 in July 2021, before stabilizing around 2.85-3.02 in the most recent periods.
The improving fixed asset turnover ratio indicates that RH has been able to generate more revenue per dollar invested in fixed assets over time, reflecting increased operational efficiency in utilizing its property, plant, and equipment. This trend suggests that RH has been successful in optimizing its fixed asset base to drive sales growth and improve overall business performance.
Overall, the increasing trend in fixed asset turnover for RH reflects efficient utilization of fixed assets to drive revenue generation, showcasing a positive operational performance for the company.
Peer comparison
Feb 3, 2024