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)
Bed Bath & Beyond Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
The analysis of the company's quarterly financial ratios over the indicated periods reveals several notable trends across its asset and equity utilization metrics.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited relative stability in the earlier periods, fluctuating modestly around values between approximately 6.5 and 6.7 from mid-2017 through late 2019. Beginning in early 2020, a significant increase occurred, peaking in the fourth quarter of 2020 at 10.74, suggesting more effective utilization of fixed assets during this period. However, following this peak, a downward trend is observed, with the ratio declining steadily to 6.09 by late August 2022, indicating a reduction in asset efficiency in recent quarters.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This adjusted metric remained consistent with the basic net fixed asset turnover ratio early on but displayed a notable decline starting mid-2019, dropping from approximately 6.5 to around 3.0. After this decline, the ratio showed a mild recovery and stabilization in early 2021, reaching near 3.9, before gradually decreasing again to 2.64 by the latest period. This pattern reflects the impact of including leased assets in the asset base, which dilutes the turnover ratio and suggests increasing leased asset investments affecting overall fixed asset utilization.
- Total Asset Turnover
- The total asset turnover ratio presented a slight downward trend over time. Initial values hovered around 1.7 to 1.8 until early 2019, after which a decline became more evident, dipping to lows near 1.29 in mid-2020. A modest recovery followed, with the ratio oscillating between approximately 1.4 and 1.6 from early 2021 to early 2022. By the last period measured, the ratio had declined again to 1.46. This pattern indicates varying efficiency in using total assets to generate sales, with more pronounced challenges during the 2020 period possibly linked to broader operational disruptions.
- Equity Turnover
- The equity turnover ratio demonstrated an overall upward trajectory, initially ranging around the mid-4s through early 2019. From mid-2019 onward, a marked increase was observed, with the ratio climbing significantly, reaching a high of 45.18 by May 2022, although missing data in subsequent periods prevent full confirmation of continued trends. The sharp increase in equity turnover suggests a substantial rise in sales relative to shareholders' equity, potentially indicative of equity contraction, enhanced leverage, or sales growth outpacing equity expansion.
In summary, the data illustrate fluctuating asset efficiency and operational performance over the years. The considerable increase and subsequent decrease in net fixed asset turnover suggest shifts in asset management or investment strategies. The inclusion of operating leases reveals the growing significance of leased assets impacting asset turnover measures. Total asset turnover trends point to varying efficiency challenges, especially around 2020, while the sharp increase in equity turnover raises questions about changes in capital structure or equity base that warrant further investigation.
Net Fixed Asset Turnover
Bed Bath & Beyond Inc., net fixed asset turnover calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Property and equipment, net | 1,121,203) | 1,119,247) | 1,027,387) | 923,977) | 918,462) | 929,335) | 918,418) | 905,251) | 1,295,967) | 1,362,110) | 1,430,604) | 1,749,543) | 1,772,667) | 1,822,679) | 1,853,091) | 1,866,086) | 1,881,957) | 1,893,230) | 1,909,289) | 1,840,959) | 1,834,470) | 1,817,594) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | 6.09 | 6.59 | 7.66 | 9.13 | 9.99 | 10.63 | 10.05 | 10.74 | 7.61 | 7.26 | 7.80 | 6.49 | 6.56 | 6.50 | 6.49 | 6.66 | 6.57 | 6.53 | 6.47 | 6.61 | 6.63 | 6.72 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.78 | 2.75 | 2.75 | 2.83 | 2.80 | 2.84 | 2.93 | 3.11 | 3.32 | 3.45 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 6.15 | 6.06 | 6.00 | 5.92 | 5.83 | 5.73 | 5.35 | 5.27 | 5.10 | 4.94 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 5.10 | 5.05 | 5.05 | 5.03 | 4.97 | 4.95 | 4.68 | 4.57 | 4.32 | 4.00 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 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: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Net fixed asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Property and equipment, net
= (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
÷ 1,121,203 = 6.09
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in net sales, property and equipment values, and net fixed asset turnover ratios.
- Net Sales
-
Net sales exhibited variability over the observed periods. Initially, sales showed moderate fluctuations around the 2.7 to 3.7 billion US dollars range, peaking notably in the March 3, 2018 period with approximately 3.7 billion US dollars. Following this peak, sales displayed a general declining trend with several periods showing decreases, especially from early 2019 into 2022. The impact of external factors is possibly reflected in the sharp decline seen in May 30, 2020, where net sales dropped to roughly 1.3 billion US dollars, the lowest within the timeframe, before experiencing partial recovery. However, sales did not return to previous high levels, indicating challenges in maintaining earlier revenue figures in later periods.
- Property and Equipment, Net
-
The net value of property and equipment demonstrated a downward trajectory throughout the period under review. Starting at approximately 1.8 billion US dollars in May 2017, the value declined steadily, with an accelerated reduction after November 2019. By May 2021, the net value had fallen significantly to near 900 million US dollars, where it stabilized slightly with minor increases seen towards the latter dates in 2022. This pattern suggests substantial asset disposals, depreciation, or impairment during the timeframe, possibly reflecting strategic downsizing or revaluation of fixed assets.
- Net Fixed Asset Turnover Ratio
-
The net fixed asset turnover ratio initially fluctuated marginally around a level of approximately 6.5 to 6.7, indicating a relatively consistent efficiency in the use of fixed assets to generate sales. A notable increase occurred in the early 2020 periods, peaking at 10.74 in November 2020, signifying improved asset utilization or reduced asset base enhancing the ratio. After this peak, the ratio gradually decreased toward 6.09 by August 2022, approaching early period levels. This pattern mirrors the trends observed in asset values and net sales, suggesting periods of asset base optimization juxtaposed with fluctuating sales volumes affecting overall asset productivity.
In summary, the data indicates a company experiencing declining asset values alongside fluctuating sales volumes with a temporary improvement in asset utilization efficiency early in the pandemic period, followed by a reversion to lower turnover ratios. This combination may suggest operational restructuring or adjustments in response to market conditions over the observed timeframe.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Bed Bath & Beyond Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Property and equipment, net | 1,121,203) | 1,119,247) | 1,027,387) | 923,977) | 918,462) | 929,335) | 918,418) | 905,251) | 1,295,967) | 1,362,110) | 1,430,604) | 1,749,543) | 1,772,667) | 1,822,679) | 1,853,091) | 1,866,086) | 1,881,957) | 1,893,230) | 1,909,289) | 1,840,959) | 1,834,470) | 1,817,594) | |||||||
| Operating lease assets | 1,469,076) | 1,597,461) | 1,562,857) | 1,603,536) | 1,668,621) | 1,584,144) | 1,587,101) | 1,615,969) | 1,913,719) | 1,903,380) | 2,006,966) | 1,947,008) | 2,012,681) | 1,990,963) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 2,590,279) | 2,716,708) | 2,590,244) | 2,527,513) | 2,587,083) | 2,513,479) | 2,505,519) | 2,521,220) | 3,209,686) | 3,265,490) | 3,437,570) | 3,696,551) | 3,785,348) | 3,813,642) | 1,853,091) | 1,866,086) | 1,881,957) | 1,893,230) | 1,909,289) | 1,840,959) | 1,834,470) | 1,817,594) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.64 | 2.72 | 3.04 | 3.34 | 3.55 | 3.93 | 3.69 | 3.86 | 3.07 | 3.03 | 3.25 | 3.07 | 3.07 | 3.11 | 6.49 | 6.66 | 6.57 | 6.53 | 6.47 | 6.61 | 6.63 | 6.72 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 2.04 | 2.03 | 2.03 | 2.10 | 2.09 | 2.13 | 2.17 | 2.30 | 2.51 | 2.61 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 4.95 | 4.90 | 4.85 | 4.79 | 4.70 | 4.63 | 4.31 | 4.29 | 4.14 | 3.96 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 4.17 | 4.15 | 4.15 | 4.12 | 4.14 | 4.11 | 3.90 | 3.79 | 3.59 | 3.31 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 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: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
÷ 2,590,279 = 2.64
2 Click competitor name to see calculations.
The financial data reveals several key trends and shifts in the company's quarterly performance and asset utilization over the observed periods.
- Net Sales
-
Net sales demonstrate a fluctuating pattern with an initial growth phase followed by significant variability. From May 2017 to March 2018, net sales generally increased, peaking around the March 2018 quarter. Subsequently, the sales trend exhibits volatility, with several quarters showing declines or modest gains. Notably, there was a sharp reduction in net sales starting May 2020, likely due to external challenges, followed by some recovery attempts. However, the sales figures remained below earlier peaks through the last reported quarters in 2022.
- Property and Equipment, Net
-
The net value of property and equipment, including operating lease rights-of-use assets, remained relatively stable with slight variations from 2017 to early 2019. Starting from the June 2019 quarter, there is a pronounced increase in the asset base, which more than doubled compared to earlier periods, reaching a new level by August 2019. Following this increase, the asset value gradually declined from early 2020 through mid-2021, reflecting potential disposals, write-downs, or lease adjustments. After mid-2021, the asset base stabilized at just above 2.5 billion USD but still lower than the mid-2019 peak.
- Net Fixed Asset Turnover
-
The net fixed asset turnover ratio, which measures how efficiently the company utilizes its property and equipment to generate sales, shows a clear downward trend over the timeframe covered. Initially, the ratio remained above 6.4, indicative of efficient asset use. However, following the spike in asset values around mid-2019, the turnover ratio substantially dropped to approximately half its previous levels, fluctuating near 3 or just below. This decline indicates reduced efficiency, likely due to the increased asset base not being matched by proportional increases in net sales. Towards the end of the data series, the turnover ratio decreases further, reflecting ongoing challenges in asset utilization efficiency.
In summary, the analyzed period shows a company facing sales volatility and challenges in maintaining efficient use of its fixed assets amid significant fluctuations in the asset base. The combination of these factors suggests potential operational and strategic adjustments that impacted overall financial performance and efficiency.
Total Asset Turnover
Bed Bath & Beyond Inc., total asset turnover calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Total assets | 4,666,639) | 4,949,102) | 5,130,572) | 5,656,638) | 6,067,523) | 6,053,289) | 6,456,930) | 6,991,610) | 7,439,100) | 7,694,347) | 7,790,515) | 8,011,988) | 7,916,378) | 7,988,195) | 6,570,541) | 7,536,744) | 7,319,863) | 7,013,746) | 7,040,806) | 7,188,878) | 6,782,659) | 6,875,801) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | 1.46 | 1.49 | 1.53 | 1.49 | 1.51 | 1.63 | 1.43 | 1.39 | 1.33 | 1.29 | 1.43 | 1.42 | 1.47 | 1.48 | 1.83 | 1.65 | 1.69 | 1.76 | 1.75 | 1.69 | 1.79 | 1.78 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 1.13 | 1.13 | 1.11 | 1.17 | 1.16 | 1.16 | 1.12 | 1.20 | 1.23 | 1.30 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 2.05 | 1.99 | 2.10 | 2.02 | 2.04 | 1.95 | 1.87 | 1.88 | 1.88 | 1.91 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 2.04 | 1.92 | 2.16 | 1.93 | 1.92 | 1.84 | 1.92 | 1.68 | 1.55 | 1.62 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 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: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Total asset turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Total assets
= (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
÷ 4,666,639 = 1.46
2 Click competitor name to see calculations.
- Net Sales
- Over the observed periods, net sales demonstrated significant fluctuations. From May 2017 through March 2018, there was a general upward trend reaching a peak in March 2018. Following this, sales showed variability with periods of decline and recovery but never returned to the earlier peak levels. Notably, a sharp decline occurred in May 2020, likely reflecting external disruptions, followed by partial recovery in the subsequent quarters. However, from early 2021 onwards, net sales maintained a downward trajectory with intermittent minor rebounds, indicating challenges in sustaining revenue growth.
- Total Assets
- Total assets presented a declining trend over the full timeframe. Initially, assets fluctuated moderately, reaching a peak in late 2019. Post this peak, a consistent reduction is observable, with assets decreasing significantly by August 2022. This steady contraction in asset base may suggest divestitures, depreciation, or impairment of assets, or a strategic reduction in the asset footprint.
- Total Asset Turnover
- The total asset turnover ratio exhibited notable variability. Initially, the ratio remained relatively stable around 1.7 to 1.8, indicating efficient use of assets to generate sales. A decline is seen starting in 2019, with asset turnover falling below 1.5 during much of 2019 and early 2020, suggesting decreased efficiency in asset utilization. Despite some recovery starting in 2021, ratios remained below earlier levels, fluctuating between 1.46 and 1.63, indicating persistent challenges in maximizing the revenue generated per unit of asset.
- Overall Analysis
- The combined analysis shows that the company experienced a period of high sales and asset utilization efficiency initially, followed by a phase marked by declining sales and asset base. The downturn in net sales, coupled with a steady reduction in total assets, underscores potential operational and market pressures. Moreover, the declining asset turnover ratio highlights a decreasing efficiency in leveraging assets for revenue generation. The period around early 2020 shows particularly pronounced impacts, possibly linked to external adverse conditions. Although some recovery attempts are visible thereafter, the general trend suggests ongoing challenges in maintaining both asset levels and revenue growth efficiently.
Equity Turnover
Bed Bath & Beyond Inc., equity turnover calculation (quarterly data)
| Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | Jun 1, 2019 | Mar 2, 2019 | Dec 1, 2018 | Sep 1, 2018 | Jun 2, 2018 | Mar 3, 2018 | Nov 25, 2017 | Aug 26, 2017 | May 27, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | 1,437,018) | 1,463,418) | 2,051,396) | 1,877,874) | 1,984,696) | 1,953,812) | 2,619,141) | 2,618,472) | 2,687,968) | 1,307,447) | 3,106,822) | 2,759,322) | 2,719,447) | 2,572,989) | 3,307,881) | 3,032,231) | 2,935,018) | 2,753,667) | 3,716,264) | 2,954,539) | 2,936,357) | 2,742,141) | |||||||
| Shareholders’ equity (deficit) | (577,654) | (220,298) | 174,145) | 553,613) | 934,234) | 1,106,794) | 1,276,936) | 1,399,959) | 1,697,008) | 1,461,090) | 1,764,935) | 1,848,205) | 1,903,703) | 2,061,994) | 2,560,331) | 2,903,275) | 2,902,408) | 2,904,179) | 2,888,628) | 2,748,846) | 2,721,698) | 2,672,592) | |||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | — | — | 45.18 | 15.24 | 9.82 | 8.93 | 7.23 | 6.94 | 5.81 | 6.77 | 6.32 | 6.15 | 6.11 | 5.75 | 4.70 | 4.28 | 4.26 | 4.26 | 4.28 | 4.43 | 4.47 | 4.57 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | 3.19 | 3.40 | 3.52 | 3.65 | 3.70 | 3.57 | 3.40 | 3.80 | 3.86 | 4.06 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 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. | 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: 2022-08-27), 10-Q (reporting date: 2022-05-28), 10-K (reporting date: 2022-02-26), 10-Q (reporting date: 2021-11-27), 10-Q (reporting date: 2021-08-28), 10-Q (reporting date: 2021-05-29), 10-K (reporting date: 2021-02-27), 10-Q (reporting date: 2020-11-28), 10-Q (reporting date: 2020-08-29), 10-Q (reporting date: 2020-05-30), 10-K (reporting date: 2020-02-29), 10-Q (reporting date: 2019-11-30), 10-Q (reporting date: 2019-08-31), 10-Q (reporting date: 2019-06-01), 10-K (reporting date: 2019-03-02), 10-Q (reporting date: 2018-12-01), 10-Q (reporting date: 2018-09-01), 10-Q (reporting date: 2018-06-02), 10-K (reporting date: 2018-03-03), 10-Q (reporting date: 2017-11-25), 10-Q (reporting date: 2017-08-26), 10-Q (reporting date: 2017-05-27).
1 Q2 2023 Calculation
Equity turnover
= (Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022
+ Net salesQ3 2022)
÷ Shareholders’ equity (deficit)
= (1,437,018 + 1,463,418 + 2,051,396 + 1,877,874)
÷ -577,654 = —
2 Click competitor name to see calculations.
The financial data shows several notable trends over the analyzed periods. Net sales exhibit a fluctuating pattern with periods of growth and decline. Earlier periods from 2017 through early 2019 demonstrate relatively stable sales in the range of approximately $2.7 billion to $3.7 billion. However, from mid-2019 onward, net sales show a noticeable decrease with intermittent recoveries. The lowest sales figures occur around mid-2020 and mid-2022, suggesting potential challenges during these periods.
Shareholders’ equity shows a general declining trend starting from a positive position around $2.67 billion in mid-2017, decreasing steadily through the years, and ultimately turning negative in 2022. This shift from positive to negative equity indicates increasing financial stress or losses, with equity deficit reaching a significant low by August 2022.
Equity turnover ratio trends reflect changes in operational efficiency relative to shareholder equity. Initially, the ratio stays between approximately 4.2 to 4.7, indicating moderate turnover. Starting in 2019, this ratio increases markedly, reaching extremely high levels above 15 in 2022 before data becomes unavailable. The increasing equity turnover ratio in the context of shrinking and eventually negative equity suggests that the company is generating relatively high sales volumes compared to its equity base, albeit against a backdrop of deteriorating equity position.
- Net Sales
- Exhibit volatility with peaks in early 2018 and declines particularly noticeable from mid-2019 onward. The drastic drop during mid-2020 aligns with global economic challenges. Partial recoveries occur but are not sustained, culminating in lower sales by mid-2022.
- Shareholders’ Equity (Deficit)
- Displays a significant decline from a strong positive equity base in 2017 to a negative position by 2022. This continuous decline highlights worsening financial strength, potentially due to accumulated losses or debt increases.
- Equity Turnover Ratio
- Remains relatively stable in early periods, then escalates sharply from 2019, indicating increased sales relative to shrinking equity. Extremely high ratios towards the end imply operational pressure on the equity base and potential financial instability.
Overall, the data points to a deteriorating financial condition characterized by decreasing net sales and shareholder equity, alongside increasing equity turnover ratios that could signal escalating risk. The negative shareholders’ equity in the latter periods is particularly concerning, indicating that liabilities may exceed assets and highlighting the need for corrective financial or operational measures.