Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Amazon.com Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Net Fixed Asset Turnover
- The ratio demonstrates a gradual decline over the observed periods, starting from 3.45 and decreasing to 2.25. This trend suggests a diminishing efficiency in generating revenue from net fixed assets, indicating either increased investment in fixed assets or a slowdown in revenue growth relative to fixed asset levels.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This metric also shows a clear downward trajectory, moving from 2.61 to 1.76. The inclusion of operating leases and right-of-use assets accentuates the decline, highlighting a reduced return on these combined asset categories. This may reflect growing lease asset bases that are not matched proportionally by revenue increases.
- Total Asset Turnover
- The total asset turnover ratio reflects a moderate decrease, from 1.3 to 0.98, indicating that the overall asset utilization to generate sales has weakened. The decline is consistent but less steep compared to fixed asset turnover metrics, which may imply other asset types are being managed more efficiently, but not sufficiently to offset the overall asset performance drop.
- Equity Turnover
- The equity turnover ratio experiences a noticeable decline from 4.06 to 2.01. This reduction suggests that the company's equity base is being used less effectively to generate revenue over time. The steady fall across all periods points to a potential decrease in the efficiency of equity capital deployment or an increase in equity that outpaces revenue growth.
Net Fixed Asset Turnover
Amazon.com Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Property and equipment, net | 297,616) | 272,781) | 252,665) | 237,917) | 220,717) | 209,950) | 204,177) | 196,468) | 193,784) | 190,754) | 186,715) | 177,195) | 173,706) | 168,468) | 160,281) | 147,152) | 133,502) | 121,461) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | 2.25 | 2.38 | 2.52 | 2.61 | 2.74 | 2.81 | 2.82 | 2.82 | 2.78 | 2.75 | 2.75 | 2.83 | 2.80 | 2.84 | 2.93 | 3.11 | 3.32 | 3.45 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 5.71 | 5.84 | 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 | ||||||
| Lowe’s Cos. Inc. | 4.80 | 4.87 | 4.89 | 5.15 | 5.37 | 5.50 | 5.53 | 5.55 | 5.10 | 5.05 | 5.05 | 5.03 | 4.97 | 4.95 | 4.68 | 4.57 | 4.32 | 4.00 | ||||||
| TJX Cos. Inc. | 7.98 | 8.29 | 8.25 | 8.36 | 8.31 | 8.53 | 8.63 | 8.84 | 9.21 | 9.43 | 9.21 | 8.84 | 8.46 | 7.46 | 6.38 | 6.67 | 6.61 | 7.08 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Net fixed asset turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Property and equipment, net
= (167,702 + 155,667 + 187,792 + 158,877)
÷ 297,616 = 2.25
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrate a generally upward trajectory over the examined periods, with recurring quarterly fluctuations reflective of seasonal patterns. Starting at $108,518 million in March 2021, sales increased steadily, peaking notably in December each year, reaching $187,792 million in December 2024. Despite some quarter-to-quarter volatility, the overall growth suggests expanding market demand and successful revenue generation strategies. The first quarter of each year tends to register lower sales compared to the fourth quarter, consistent with typical business cycles.
- Property and Equipment, Net
- The net value of property and equipment shows continuous growth throughout the periods, indicating ongoing investments in fixed assets. From $121,461 million in March 2021, it rose progressively to $297,616 million by June 2025. The incremental increases are consistent each quarter, suggesting sustained capital expenditures and expansion efforts. This consistent asset base growth supports the company's operational scale and capacity enhancements over time.
- Net Fixed Asset Turnover Ratio
- This ratio, which measures efficiency in utilizing fixed assets to generate sales, has exhibited a declining trend. Starting at 3.45 in March 2021, it decreased steadily to 2.25 by June 2025. The decline indicates that, relative to the growing investment in property and equipment, net sales have not increased at a proportional rate. This may suggest decreasing productivity of fixed assets or a strategic focus on long-term asset building that has yet to fully translate into proportional revenue increases.
- Overall Insights
- The financial data reveals a consistent pattern of increasing asset base alongside growing net sales, albeit with efficiency ratios pointing to reduced leverage of fixed assets. This suggests a phase of significant capital investment potentially aimed at supporting future growth. The seasonal sales patterns remain evident, and the company appears to be managing expansion with substantial asset accumulation, even as it faces a gradual decline in asset turnover efficiency. Monitoring future periods will be essential to determine if asset utilization improves to maintain healthy growth dynamics.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Amazon.com Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Property and equipment, net | 297,616) | 272,781) | 252,665) | 237,917) | 220,717) | 209,950) | 204,177) | 196,468) | 193,784) | 190,754) | 186,715) | 177,195) | 173,706) | 168,468) | 160,281) | 147,152) | 133,502) | 121,461) | ||||||
| Operating leases | 82,125) | 78,495) | 76,141) | 76,527) | 74,575) | 73,313) | 72,513) | 70,758) | 70,332) | 68,262) | 66,123) | 62,033) | 58,430) | 56,161) | 56,082) | 52,151) | 43,346) | 39,328) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 379,741) | 351,276) | 328,806) | 314,444) | 295,292) | 283,263) | 276,690) | 267,226) | 264,116) | 259,016) | 252,838) | 239,228) | 232,136) | 224,629) | 216,363) | 199,303) | 176,848) | 160,789) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.76 | 1.85 | 1.94 | 1.97 | 2.05 | 2.09 | 2.08 | 2.07 | 2.04 | 2.03 | 2.03 | 2.10 | 2.09 | 2.13 | 2.17 | 2.30 | 2.51 | 2.61 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 4.31 | 4.48 | 4.49 | 4.69 | 4.69 | 4.78 | 4.83 | 4.95 | 4.95 | 4.90 | 4.85 | 4.79 | 4.70 | 4.63 | 4.31 | 4.29 | 4.14 | 3.96 | ||||||
| Lowe’s Cos. Inc. | 3.94 | 4.00 | 4.04 | 4.26 | 4.43 | 4.58 | 4.60 | 4.62 | 4.17 | 4.15 | 4.15 | 4.12 | 4.14 | 4.11 | 3.90 | 3.79 | 3.59 | 3.31 | ||||||
| TJX Cos. Inc. | 3.37 | 3.41 | 3.40 | 3.36 | 3.29 | 3.34 | 3.36 | 3.38 | 3.45 | 3.47 | 3.44 | 3.19 | 3.02 | 2.66 | 2.29 | 2.38 | 2.38 | 2.58 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (167,702 + 155,667 + 187,792 + 158,877)
÷ 379,741 = 1.76
2 Click competitor name to see calculations.
The quarterly financial data reflects several notable trends over the periods analyzed.
- Net Sales
- Net sales exhibit a generally upward trajectory with some fluctuations. Starting from approximately 108.5 billion US dollars in the first quarter of 2021, sales show growth through the end of 2021 and into 2022, peaking notably in the fourth quarter of 2022 at around 169.9 billion. Following this peak, sales experience a slight dip but continue to climb steadily, reaching about 187.8 billion by the fourth quarter of 2024. This upward trend indicates sustained revenue growth over the observed periods, with seasonal or cyclical peaks likely influencing the quarterly variances.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
- Investment in property and equipment shows consistent growth throughout the timeframe, rising from about 160.8 billion US dollars at the beginning of 2021 to approximately 379.7 billion by the second quarter of 2025. This steady increase suggests ongoing capital expenditures and expansion in assets, which may support business operations and growth strategies.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio displays a declining trend, decreasing from 2.61 in the first quarter of 2021 to 1.76 by the second quarter of 2025. This decline indicates that net sales are growing at a slower rate relative to the increase in net fixed assets. In other words, the efficiency with which the company is utilizing its fixed assets to generate sales is gradually reducing, which could reflect either asset-heavy investments or slower sales growth compared to asset expansion.
In summary, while the company demonstrates robust net sales growth and significant increases in fixed assets, the declining fixed asset turnover ratio suggests a need to monitor asset utilization efficiency moving forward. The ongoing investment in property and equipment signals a commitment to capacity expansion, but the company may benefit from strategies aimed at improving asset productivity to maintain or enhance operational efficiency.
Total Asset Turnover
Amazon.com Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Total assets | 682,170) | 643,256) | 624,894) | 584,626) | 554,818) | 530,969) | 527,854) | 486,883) | 477,607) | 464,378) | 462,675) | 428,362) | 419,728) | 410,767) | 420,549) | 382,406) | 360,319) | 323,077) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | 0.98 | 1.01 | 1.02 | 1.06 | 1.09 | 1.11 | 1.09 | 1.14 | 1.13 | 1.13 | 1.11 | 1.17 | 1.16 | 1.16 | 1.12 | 1.20 | 1.23 | 1.30 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 1.57 | 1.92 | 1.99 | 2.03 | 2.03 | 2.04 | 2.06 | 2.05 | 2.05 | 1.99 | 2.10 | 2.02 | 2.04 | 1.95 | 1.87 | 1.88 | 1.88 | 1.91 | ||||||
| Lowe’s Cos. Inc. | 1.87 | 1.88 | 2.07 | 2.12 | 2.09 | 2.09 | 2.22 | 2.04 | 2.04 | 1.92 | 2.16 | 1.93 | 1.92 | 1.84 | 1.92 | 1.68 | 1.55 | 1.62 | ||||||
| TJX Cos. Inc. | 1.82 | 1.85 | 1.82 | 1.72 | 1.77 | 1.75 | 1.76 | 1.73 | 1.83 | 1.80 | 1.71 | 1.52 | 1.50 | 1.25 | 1.04 | 1.06 | 1.27 | 1.45 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Total asset turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Total assets
= (167,702 + 155,667 + 187,792 + 158,877)
÷ 682,170 = 0.98
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibit a generally upward trajectory over the periods analyzed, with fluctuations reflecting seasonal or market-driven factors. Starting at approximately 108.5 billion USD in early 2021, sales increased modestly through the year, peaking at 137.4 billion USD at the end of 2021. Following this peak, the figures dipped slightly in early 2022 but resumed growth, reaching a higher peak of nearly 170 billion USD by the end of 2023. Subsequent quarters show sustained increases, with the most recent data indicating net sales of around 167.7 billion USD, which is a significant growth compared to the initial period.
- Total Assets
- Total assets have consistently grown throughout the entire span. Beginning at 323 billion USD in early 2021, assets expanded steadily, nearing 462.7 billion USD by the end of 2022. This growth continued robustly during 2023 and 2024, culminating in assets exceeding 682 billion USD by mid-2025. The progression highlights an aggressive acquisition or investment strategy, increasing the asset base by more than double within this timeframe.
- Total Asset Turnover
- Total asset turnover shows a gradual declining trend over the observed periods. Starting at a relatively high ratio of 1.3 in early 2021, it decreases steadily, dipping below 1.0 by mid-2025. This downward trend suggests that while total assets grew substantially, the efficiency in utilizing these assets to generate net sales diminished over time. The ratio moving below 1.0 implies that the company generates less than one dollar of sales per dollar of assets at the most recent date.
- Summary
- The analyzed periods reveal strong growth in net sales and total assets, indicating expansion in both marketplace performance and resource base. However, the declining asset turnover ratio points to a decrease in operational efficiency with respect to asset utilization. The company appears to be investing heavily in assets, but the pace of sales growth relative to these investments is slowing. This could warrant further analysis to determine if the asset base is optimally deployed or if growth initiatives are leading to underutilization of resources.
Equity Turnover
Amazon.com Inc., equity turnover calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Net sales | 167,702) | 155,667) | 187,792) | 158,877) | 147,977) | 143,313) | 169,961) | 143,083) | 134,383) | 127,358) | 149,204) | 127,101) | 121,234) | 116,444) | 137,412) | 110,812) | 113,080) | 108,518) | ||||||
| Stockholders’ equity | 333,775) | 305,867) | 285,970) | 259,151) | 236,447) | 216,661) | 201,875) | 182,973) | 168,602) | 154,526) | 146,043) | 137,489) | 131,402) | 134,001) | 138,245) | 120,564) | 114,803) | 103,320) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | 2.01 | 2.13 | 2.23 | 2.39 | 2.56 | 2.73 | 2.85 | 3.03 | 3.19 | 3.40 | 3.52 | 3.65 | 3.70 | 3.57 | 3.40 | 3.80 | 3.86 | 4.06 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Home Depot Inc. | 34.41 | 83.42 | 146.23 | 107.49 | 116.01 | 430.25 | 100.77 | 121.18 | 655.02 | — | — | 142.70 | 69.80 | 80.86 | 40.05 | 81.84 | — | — | ||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | 212.01 | 62.35 | 20.95 | 18.46 | 43.17 | ||||||
| TJX Cos. Inc. | 7.15 | 7.32 | 7.42 | 7.66 | 7.75 | 7.83 | 7.85 | 8.70 | 9.20 | 8.91 | 8.09 | 7.08 | 6.75 | 6.16 | 5.51 | 6.00 | 7.24 | 7.78 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Equity turnover
= (Net salesQ2 2025
+ Net salesQ1 2025
+ Net salesQ4 2024
+ Net salesQ3 2024)
÷ Stockholders’ equity
= (167,702 + 155,667 + 187,792 + 158,877)
÷ 333,775 = 2.01
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrate a consistent upward trend over the observed periods. Beginning at $108.5 billion in the first quarter of 2021, net sales increased steadily with some seasonal fluctuations typically peaking in the fourth quarters of each year. The most notable growth appears in the fourth quarter of 2024 at approximately $187.8 billion, representing the highest sales figure reported. Despite minor fluctuations in quarterly comparisons, the overall pattern indicates strong and sustained revenue growth, suggesting effective sales performance and possibly expanding market demand.
- Stockholders' Equity
- Stockholders' equity shows a clear increasing trajectory throughout the data timeline. Starting from around $103.3 billion in Q1 2021, equity expanded consistently each quarter, reaching approximately $333.8 billion by Q2 2025. This growth reflects retained earnings accumulation and possibly equity financing activities or asset appreciation. The steady rise in equity indicates a strengthening financial foundation for the company, enhancing its solvency and capacity to sustain business operations or pursue strategic investments.
- Equity Turnover Ratio
- The equity turnover ratio exhibits a gradual decline throughout the reported quarters, decreasing from 4.06 in Q1 2021 to 2.01 by Q2 2025. This ratio, representing the efficiency with which equity capital is used to generate sales, indicates diminishing turnover effectiveness over time. While net sales have grown significantly, the proportionate increase in equity has outpaced sales growth, leading to lower turnover. This trend may suggest increasing capital intensity or accumulation of equity beyond what is immediately translated into higher sales. It could also imply a strategic shift toward more capital-intensive operations or investments with longer-term payoff horizons.
- Summary
- Overall, the company's financial data indicates robust revenue growth and a strong expansion of equity capital over the analyzed periods. The declining equity turnover ratio highlights a reduced efficiency in using equity to generate sales, which could warrant further examination of capital deployment strategies. Despite this, the sustained increase in both sales and equity evidences sound financial health and potential strategic investments supporting future growth prospects.