RH (RH)
Total 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 |
| Total assets | US$ in thousands | 4,143,900 | 5,309,290 | 5,540,470 | 2,898,310 | 2,445,690 |
| Total asset turnover | 0.68 | 0.67 | 0.66 | 0.96 | 1.05 |
February 3, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,836,370K ÷ $4,143,900K
= 0.68
The total asset turnover ratio measures a company's ability to generate sales from its total assets. In the case of RH, the trend in total asset turnover over the past five years shows a slight decrease from 1.05 in February 2020 to 0.68 in February 2024. This declining trend indicates that RH has become less efficient in utilizing its assets to generate sales over this period.
A total asset turnover ratio below 1.0 implies that RH is not efficiently generating sales relative to its total assets. The decreasing trend may suggest that the company may be facing challenges in efficiently utilizing its assets or increasing its sales volume.
It is important for RH to closely monitor and analyze its total asset turnover ratio to identify areas for improvement in asset utilization and sales generation efficiency. By focusing on enhancing operational efficiency and optimizing asset utilization, RH can work towards improving its total asset turnover ratio in the future.
Peer comparison
Feb 3, 2024