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), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).
The analysis of key financial turnover ratios over the reported periods reveals several noteworthy trends.
- Net Fixed Asset Turnover
- This ratio, which measures efficiency in using fixed assets to generate sales, was relatively stable from early 2017 through early 2020, fluctuating between approximately 6.47 and 7.8. A marked increase occurred around the period ending May 30, 2020, peaking at 10.74, indicating improved asset utilization. However, after this peak, the ratio exhibited a declining trend, falling to 6.09 by August 27, 2022, suggesting a reduction in fixed asset efficiency over the more recent periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Initially, this ratio mirrored the net fixed asset turnover, maintaining similar values up to March 2, 2019. Starting thereafter, there is a noticeable decrease, with values declining from around 3.11 in June 2019 to 2.64 by August 2022. The significant drop compared to historical figures implies either an increase in lease-related assets on the balance sheet or decreased sales relative to the expanded asset base from lease accounting, reflecting the impact of accounting standard changes and shifts in operating lease usage.
- Total Asset Turnover
- This ratio, indicating overall asset efficiency in generating sales, shows a gradual decline over time. From peak values near 1.79 in late 2016 and early 2017, it steadily decreases to approximately 1.29 by May 30, 2020. A moderate recovery follows, with ratios fluctuating near 1.5 to 1.6 through 2021 but again slightly declining towards 1.46 by August 27, 2022. This trend reflects a weakening in generating revenue from the entire asset base over the period considered.
- Equity Turnover
- The equity turnover ratio demonstrates considerable volatility, with values consistently rising from around 4.2 in early 2017 to an exceptional spike reaching above 45.0 around November 27, 2021. This abrupt increase indicates either significant declines in average equity or fluctuations in sales relative to equity. Given the sudden spike, it likely corresponds to extraordinary accounting or capital structure events affecting equity levels. After this peak, data is missing, preventing confirmation of whether this increase was sustained.
Overall, the turnover ratios suggest periods of fluctuating operational efficiency, with net fixed asset utilization peaking around early 2020 before declining, possibly influenced by changes in asset base composition and broader operational conditions. The impact of accounting changes related to operating leases is evident in the significant divergence between net fixed asset turnover calculations excluding and including right-of-use assets. Total asset turnover exhibits a gradual decline, hinting at reduced efficiency in converting assets into revenue over time. Equity turnover's sharp increase may signal capital structure changes or equity revaluations impacting financial leverage and returns during late 2021.
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 | Feb 25, 2017 | Nov 26, 2016 | Aug 27, 2016 | May 28, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,533,954) | 2,955,484) | 2,988,235) | 2,738,084) | ||||||||
| 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) | 1,837,129) | 1,769,061) | 1,739,952) | 1,723,429) | ||||||||
| 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 | 6.65 | — | — | — | ||||||||
| 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 | 3.41 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 6.15 | 6.06 | 6.00 | 5.92 | 5.83 | 5.73 | 5.35 | 5.27 | 5.10 | 4.94 | 4.84 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 5.10 | 5.05 | 5.05 | 5.03 | 4.97 | 4.95 | 4.68 | 4.57 | 4.32 | 4.00 | 3.86 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 9.21 | 9.43 | 9.21 | 8.84 | 8.46 | 7.46 | 6.38 | 6.67 | 6.61 | 7.08 | 7.83 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).
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.
- Net Sales
- The net sales displayed a generally fluctuating pattern with periods of growth and decline over the analyzed quarters. Initially, net sales rose from approximately $2.74 billion in May 2016 to a peak near $3.71 billion in March 2018. This peak was followed by a phase of variable performance with alternating decreases and increases, including a marked decline reaching about $1.31 billion in May 2020, likely impacted by broader economic conditions. Subsequent quarters showed modest recovery with fluctuations around the $2.6 billion mark, though the overall trend post-2020 suggests a downward trajectory toward $1.44 billion by August 2022.
- Property and Equipment, Net
- The net value of property and equipment exhibited a gradual reduction over the period. Starting from approximately $1.72 billion in May 2016, this asset base remained relatively steady through late 2018, with only minor declines. However, from early 2019 onwards, the net property and equipment value declined more noticeably, falling below $1.44 billion by May 2020. Despite this, there was a slight recovery and stabilization trend observed in the latter quarters, with values hovering around $1.12 billion by mid-2022. This trend indicates ongoing asset liquidation or depreciation impacts, potentially reflecting strategic decisions on asset management.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, calculated from February 2017 onwards, showed an overall increasing trend. Early values in 2017 ranged near 6.5 to 6.7 times, reflecting efficient use of fixed assets in generating sales. The ratio improved steadily reaching a notable peak of 10.74 times in November 2020, which coincides with the period of reduced property and equipment values and lower sales volumes. This suggests a substantial increase in asset utilization efficiency during this challenging period. Following this peak, the ratio gradually declined through 2022, returning closer to levels observed in earlier years, around 6 to 7 times, possibly indicating stabilization in asset use or changes in operational scale.
- Overall Observations
- The data indicates that despite net sales volatility, particularly a sharp dip around early 2020, the company managed to improve its asset utilization efficiency significantly during that time. The diminishing property and equipment base reflects possible divestments or accelerated depreciation, which alongside improved turnover ratios, may have been responses to changing market demands or restructuring efforts. Post-2020, while sales struggled to regain prior highs, asset turnover ratios normalized, suggesting adjustments to more sustainable operational levels. The trends point to a shift towards leaner fixed asset holdings coupled with efforts to maintain sales performance under evolving conditions.
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 | Feb 25, 2017 | Nov 26, 2016 | Aug 27, 2016 | May 28, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,533,954) | 2,955,484) | 2,988,235) | 2,738,084) | ||||||||
| 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) | 1,837,129) | 1,769,061) | 1,739,952) | 1,723,429) | ||||||||
| 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) | 1,837,129) | 1,769,061) | 1,739,952) | 1,723,429) | ||||||||
| 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 | 6.65 | — | — | — | ||||||||
| 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 | 2.56 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 4.95 | 4.90 | 4.85 | 4.79 | 4.70 | 4.63 | 4.31 | 4.29 | 4.14 | 3.96 | 3.89 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 4.17 | 4.15 | 4.15 | 4.12 | 4.14 | 4.11 | 3.90 | 3.79 | 3.59 | 3.31 | 3.20 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 3.45 | 3.47 | 3.44 | 3.19 | 3.02 | 2.66 | 2.29 | 2.38 | 2.38 | 2.58 | 2.90 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).
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 analyzed financial data reveals several notable trends in the company's quarterly performance over the specified periods.
- Net Sales
-
Net sales exhibit a cyclical pattern with fluctuations across quarters. Initially, the company reported sales generally ranging between approximately 2.7 billion and 3.7 billion USD, reflecting a stable yet varied revenue base through early 2019. However, from early 2020 onwards, net sales display a marked decline, with some quarters registering nearly half or less of the earlier sales volumes (e.g., dropping to around 1.3 billion USD in May 2020). This significant decrease suggests the presence of impactful external or internal factors affecting revenue. After the initial sharp decline, sales appear to stabilize but at lower levels, oscillating roughly between 1.4 billion and 2.6 billion USD through 2022.
- Property and Equipment, Net (Including Operating Lease, Right-of-Use Asset)
-
The net value of property and equipment remained relatively stable up to early 2019, hovering around 1.7 to 1.9 billion USD. A substantial increase is evident starting from mid-2019, where reported values approximately double to about 3.8 billion USD, then gradually decline until early 2021. From 2021 onwards, values fluctuate moderately around the 2.5 to 2.7 billion USD range. This pattern indicates major asset additions or reclassifications around 2019, possibly linked to operational changes or accounting treatments related to leases. The subsequent decline may indicate asset disposals, impairments, or changes in lease agreements over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
-
The ratio of net fixed asset turnover is available from late 2016 onwards and reveals a declining trend overall. Earlier periods demonstrate higher efficiency with turnover ratios around 6.5 to 6.7, implying a stronger ability to generate sales from fixed assets. After mid-2019, this ratio decreases sharply, reaching values near 3.0, indicating reduced efficiency or diminished asset utilization. A brief improvement occurs around late 2020 and early 2021, but the ratio resumes its downward movement toward approximately 2.6 by mid-2022. The decline reflects either an increase in asset base not matched by sales growth or a contraction in sales relative to fixed asset size, aligning with observed decreases in net sales and the fluctuations in property and equipment values.
In summary, the company experienced significant shifts during the period under review. Net sales and asset efficiency both diminished notably after early 2020, while the asset base experienced large-scale changes beginning in 2019. These patterns suggest challenges in maintaining revenue levels and asset utilization efficiency, likely influenced by structural or market conditions influencing the business environment.
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 | Feb 25, 2017 | Nov 26, 2016 | Aug 27, 2016 | May 28, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,533,954) | 2,955,484) | 2,988,235) | 2,738,084) | ||||||||
| 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) | 6,846,029) | 7,232,801) | 6,669,375) | 6,578,977) | ||||||||
| 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 | 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 | 1.20 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 2.05 | 1.99 | 2.10 | 2.02 | 2.04 | 1.95 | 1.87 | 1.88 | 1.88 | 1.91 | 2.15 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 2.04 | 1.92 | 2.16 | 1.93 | 1.92 | 1.84 | 1.92 | 1.68 | 1.55 | 1.62 | 1.83 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 1.83 | 1.80 | 1.71 | 1.52 | 1.50 | 1.25 | 1.04 | 1.06 | 1.27 | 1.45 | 1.73 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).
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.
The financial data over the reported periods indicate several notable trends in net sales, total assets, and total asset turnover.
- Net Sales
- Net sales demonstrate a fluctuating pattern with intermittent periods of growth and decline. Early data points from 2016 through early 2018 show generally consistent sales slightly above 2.7 million US dollars, with peaks around March 2018 near 3.7 million US dollars. Subsequently, sales tended to hover around 2.5 to 3.3 million US dollars until early 2020. However, from May 2020 onwards, a marked decline is apparent, with net sales dropping sharply, notably down to approximately 1.3 million US dollars in May 2020 and continuing a downward trend through mid-2022, remaining below 1.5 million US dollars. This decrease suggests challenges in revenue generation during the latter periods.
- Total Assets
- Total assets increased moderately from 2016 through late 2018, rising from roughly 6.6 billion US dollars to about 7.5 billion US dollars. The peak occurs around late 2018 to early 2019, with assets just above 7.9 billion US dollars. Post this peak, a steady decline is recorded starting from 2020 through the subsequent years, falling to under 4.7 billion US dollars by the third quarter of 2022. This downward trend in total assets may reflect asset disposals, impairments, or reduced company size during the period.
- Total Asset Turnover
- The ratio of total asset turnover, available for select periods, suggests a gradual reduction over time. Early figures in 2017 approximate values around 1.75 to 1.8, indicating relatively efficient use of assets to generate sales. However, from 2019 forward, this ratio appears to decline, moving closer to 1.3 by early 2021, before showing some slight improvement and stabilization around 1.4 to 1.5 in 2022. The lower turnover indicates diminished effectiveness in using assets to produce revenue, especially during the period when net sales and total assets were also decreasing.
In summary, the data reflect a period of relative stability in sales and asset base through 2018 and 2019, followed by a significant downturn beginning in 2020. The decreases in net sales and total assets, combined with a declining asset turnover ratio, point toward operational and financial challenges impacting performance and asset utilization in recent years.
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 | Feb 25, 2017 | Nov 26, 2016 | Aug 27, 2016 | May 28, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | 3,533,954) | 2,955,484) | 2,988,235) | 2,738,084) | ||||||||
| 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) | 2,719,277) | 2,614,983) | 2,573,995) | 2,529,087) | ||||||||
| 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 | 4.49 | — | — | — | ||||||||
| 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 | 4.13 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| 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 | 36.59 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 9.20 | 8.91 | 8.09 | 7.08 | 6.75 | 6.16 | 5.51 | 6.00 | 7.24 | 7.78 | 7.01 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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), 10-K (reporting date: 2017-02-25), 10-Q (reporting date: 2016-11-26), 10-Q (reporting date: 2016-08-27), 10-Q (reporting date: 2016-05-28).
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 analysis of the financial data reveals notable trends in net sales, shareholders' equity, and equity turnover ratios over the given periods.
- Net Sales
- Net sales figures exhibit a cyclical pattern with fluctuations over the quarters. Initially, net sales ranged around 2.7 to 3.7 billion US dollars. A noticeable peak occurred around early 2018, with net sales reaching approximately 3.7 billion. Subsequently, net sales generally trended downward after early 2020, coinciding with a significant drop to approximately 1.3 billion in May 2020. After that point, net sales showed some variability but remained below earlier highs, fluctuating roughly between 1.4 and 2.6 billion towards the end of the period. This decline indicates potential challenges in maintaining sales volume.
- Shareholders’ Equity (Deficit)
- Shareholders’ equity showed a gradual increase from around 2.5 billion in mid-2016 to a peak nearing 2.9 billion by early 2019. Following this peak, equity started to decrease steadily, falling to a significant deficit by August 2022 (approximately -577 million). The decline indicates eroding shareholder value possibly due to accumulated losses, write-downs, or increased liabilities. The trend reflects a weakening financial position over the years, especially pronounced after early 2019.
- Equity Turnover Ratio
- The equity turnover ratio, measured as the ratio of net sales to shareholders’ equity, started at around 4.5 in early observations and generally increased over time, indicating that the company was generating more sales per unit of equity. This ratio grew significantly from around early 2020, peaking sharply at 45.18 by May 2022. The sharp increase indicates that despite shrinking equity, the company continued generating sales, which may point to leveraged operations and higher reliance on debt or liabilities rather than equity funding. However, such a high ratio coupled with declining equity can signal financial stress and heightened risk.
Overall, the data suggests that while the company maintained a capacity to generate net sales, its shareholders' equity eroded substantially over time, culminating in a deficit. The rising equity turnover ratio further underscores the disparity between sales activity and the equity base, highlighting potential financial instability concerns in the latter periods under review.