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)
lululemon athletica inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
The investment activity ratios demonstrate varying trends over the analyzed period. Generally, the ratios indicate a moderate level of efficiency in utilizing assets to generate revenue, with some evidence of declining performance in the most recent periods. A consistent pattern of fluctuation is observed across all ratios, suggesting sensitivity to underlying business conditions and strategic decisions.
- Net Fixed Asset Turnover
- This ratio exhibits a general downward trend from 6.42 to 5.46 over the entire period. While initial values remained relatively stable between 6.42 and 6.85, a more pronounced decline is visible from the beginning of 2023, falling to 5.46 in the latest period. This suggests a decreasing ability to generate sales from fixed assets, potentially due to increased investment in fixed assets without a corresponding increase in revenue, or a slowdown in sales growth. The rate of decline appears to be accelerating in the most recent quarters.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also demonstrates a declining trend, moving from 3.33 to 3.03. The decline is less dramatic than that observed in the standard ratio, but still indicates a decreasing efficiency in utilizing total fixed assets, including those acquired through operating leases. The ratio shows relative stability in the earlier periods, with a more noticeable decrease beginning in late 2024 and continuing into 2026. This suggests that the impact of operating leases on asset turnover is becoming more pronounced as the company potentially increases its reliance on leased assets.
- Total Asset Turnover
- This ratio initially shows an increasing trend, rising from 1.15 to a peak of 1.53. However, it then begins to decline, ending at 1.31. The initial increase suggests improved efficiency in utilizing all assets to generate revenue. The subsequent decline indicates a potential slowdown in the rate of revenue growth relative to the company’s asset base. The most recent quarters show a consistent downward movement, suggesting a weakening of asset utilization efficiency.
- Equity Turnover
- The equity turnover ratio exhibits a generally increasing trend until late 2023, peaking at 2.61. Following this peak, the ratio declines to 2.24. This suggests that the company was initially becoming more efficient at generating revenue from shareholder equity, but this trend reversed in the most recent periods. The decline could be attributed to slower revenue growth or an increase in equity. The rate of decline is noticeable in the latest periods, mirroring the trends observed in the asset turnover ratios.
Overall, the observed trends suggest a potential weakening in the company’s ability to efficiently utilize its assets and equity to generate revenue, particularly in the most recent quarters. Further investigation into the underlying drivers of these trends, such as changes in sales growth, asset investment strategies, and equity structure, would be beneficial.
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Net Fixed Asset Turnover
lululemon athletica inc., net fixed asset turnover calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net revenue | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | ||||||
| Property and equipment, net | 2,033,720) | 1,952,012) | 1,917,361) | 1,846,609) | 1,780,617) | 1,697,759) | 1,614,893) | 1,561,185) | 1,545,811) | 1,413,918) | 1,367,172) | 1,312,793) | 1,269,614) | 1,122,490) | 1,059,859) | 974,784) | 927,710) | 876,489) | 806,387) | 774,685) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.46 | 5.67 | 5.69 | 5.82 | 5.95 | 6.00 | 6.19 | 6.29 | 6.22 | 6.50 | 6.46 | 6.47 | 6.39 | 6.65 | 6.66 | 6.82 | 6.74 | 6.68 | 6.85 | 6.42 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Nike Inc. | — | — | 9.60 | 9.55 | 9.59 | 10.14 | 10.08 | 10.11 | 10.27 | 10.15 | 10.00 | 10.07 | 10.08 | 10.25 | 10.12 | 9.87 | 9.75 | 9.74 | 9.62 | 9.49 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Net fixed asset turnover
= (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
÷ Property and equipment, net
= (3,640,801 + 2,565,920 + 2,525,219 + 2,370,660)
÷ 2,033,720 = 5.46
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally declining trend over the observed period, although with considerable fluctuation. Initially, the ratio demonstrates relative stability, followed by a period of more pronounced decrease. This analysis details the observed patterns and potential implications.
- Initial Period (May 2021 – January 2022)
- The net fixed asset turnover ratio begins at 6.42 and fluctuates between 6.68 and 6.85 before settling at 6.74. This suggests a consistent ability to generate revenue relative to the investment in fixed assets during this timeframe. The variations within this period are relatively minor.
- Moderate Decline (May 2022 – October 2022)
- From May 2022 through October 2022, the ratio experiences a gradual decline from 6.82 to 6.65. While still representing efficient asset utilization, this period signals the beginning of a downward trend. The decrease is not substantial, but it warrants monitoring.
- Accelerated Decline (January 2023 – February 2026)
- A more noticeable decline is observed starting in January 2023, with the ratio decreasing from 6.39 to 5.46 by February 2026. This represents a significant reduction in revenue generated per dollar of fixed assets. The lowest point in the observed period is reached in February 2026. The rate of decline appears to accelerate during this phase.
- Recent Fluctuations (May 2025 – February 2026)
- The period from May 2025 to February 2026 shows some fluctuation, with the ratio moving between 5.82 and 5.46. This suggests potential short-term influences impacting asset utilization, but the overall trend remains downward. The final reported value of 5.46 indicates a continued reduction in the efficiency of fixed asset utilization.
Overall, the observed trend suggests a decreasing efficiency in utilizing fixed assets to generate revenue. While the initial values indicate strong performance, the subsequent decline warrants further investigation to determine the underlying causes. Potential factors could include increased investment in fixed assets without a corresponding increase in revenue, decreased operational efficiency, or changes in the company’s business model.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
lululemon athletica inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net revenue | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | ||||||
| Property and equipment, net | 2,033,720) | 1,952,012) | 1,917,361) | 1,846,609) | 1,780,617) | 1,697,759) | 1,614,893) | 1,561,185) | 1,545,811) | 1,413,918) | 1,367,172) | 1,312,793) | 1,269,614) | 1,122,490) | 1,059,859) | 974,784) | 927,710) | 876,489) | 806,387) | 774,685) | ||||||
| Right-of-use operating lease assets | 1,630,181) | 1,600,385) | 1,605,009) | 1,549,401) | 1,416,256) | 1,360,589) | 1,302,947) | 1,263,749) | 1,265,610) | 1,048,607) | 1,079,198) | 993,471) | 969,419) | 946,687) | 867,901) | 819,998) | 803,543) | 789,381) | 729,621) | 719,139) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 3,663,901) | 3,552,397) | 3,522,370) | 3,396,010) | 3,196,873) | 3,058,348) | 2,917,840) | 2,824,934) | 2,811,421) | 2,462,525) | 2,446,370) | 2,306,264) | 2,239,033) | 2,069,177) | 1,927,760) | 1,794,782) | 1,731,253) | 1,665,870) | 1,536,008) | 1,493,824) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.03 | 3.12 | 3.10 | 3.17 | 3.31 | 3.33 | 3.42 | 3.48 | 3.42 | 3.73 | 3.61 | 3.68 | 3.62 | 3.61 | 3.66 | 3.70 | 3.61 | 3.52 | 3.60 | 3.33 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
| Nike Inc. | — | — | 6.01 | 6.12 | 6.14 | 6.52 | 6.45 | 6.46 | 6.65 | 6.50 | 6.37 | 6.40 | 6.40 | 6.51 | 6.41 | 6.16 | 6.05 | 5.34 | 5.91 | 5.81 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (3,640,801 + 2,565,920 + 2,525,219 + 2,370,660)
÷ 3,663,901 = 3.03
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using property and equipment inclusive of operating leases and right-of-use assets, demonstrates a generally stable pattern over the analyzed period, with some fluctuations. Initially, the ratio exhibits an increasing trend, followed by a period of relative stability, and then a slight decline towards the end of the observation window.
- Initial Increasing Trend (May 2, 2021 – May 1, 2022)
- From May 2, 2021, to May 1, 2022, the net fixed asset turnover ratio increased from 3.33 to 3.70. This suggests an improving efficiency in utilizing fixed assets to generate revenue during this period. The company was able to generate more revenue per dollar invested in fixed assets.
- Period of Stability (July 31, 2022 – Jan 29, 2023)
- Following the peak in May 2022, the ratio experienced a period of relative stability, fluctuating between 3.61 and 3.73 through January 29, 2023. This indicates a consistent level of asset utilization, with no significant changes in operational efficiency.
- Subsequent Decline (Apr 30, 2023 – Feb 1, 2026)
- Beginning in April 2023, a gradual downward trend is observed, with the ratio decreasing from 3.68 to 3.03 by February 1, 2026. This decline suggests a decreasing efficiency in fixed asset utilization. The company generated less revenue for each dollar invested in fixed assets during this timeframe. The most significant drop occurs between August 3, 2025 and February 1, 2026.
- Overall Observations
- The ratio remained above 3.0 throughout the entire period, indicating generally efficient asset utilization. However, the recent decline warrants further investigation to determine the underlying causes, such as potential overinvestment in fixed assets, slower revenue growth, or changes in operational strategies. The fluctuations observed may also be influenced by seasonal sales patterns or specific promotional activities.
The observed trend suggests that while the company historically demonstrated strong efficiency in utilizing its fixed assets, recent performance indicates a potential need to reassess asset allocation and operational strategies to maintain or improve asset turnover.
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Total Asset Turnover
lululemon athletica inc., total asset turnover calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net revenue | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | ||||||
| Total assets | 8,456,743) | 7,955,192) | 7,523,439) | 7,430,543) | 7,603,292) | 7,083,669) | 6,744,135) | 6,828,495) | 7,091,941) | 6,022,264) | 5,992,458) | 5,571,544) | 5,607,038) | 5,309,436) | 4,920,711) | 4,697,212) | 4,942,478) | 4,572,007) | 4,405,098) | 4,329,831) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 1.31 | 1.39 | 1.45 | 1.45 | 1.39 | 1.44 | 1.48 | 1.44 | 1.36 | 1.53 | 1.47 | 1.53 | 1.45 | 1.41 | 1.44 | 1.41 | 1.27 | 1.28 | 1.25 | 1.15 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Nike Inc. | — | — | 1.23 | 1.24 | 1.27 | 1.27 | 1.29 | 1.32 | 1.35 | 1.38 | 1.39 | 1.40 | 1.36 | 1.32 | 1.24 | 1.15 | 1.16 | 1.18 | 1.19 | 1.22 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Total asset turnover
= (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
÷ Total assets
= (3,640,801 + 2,565,920 + 2,525,219 + 2,370,660)
÷ 8,456,743 = 1.31
2 Click competitor name to see calculations.
The total asset turnover ratio for the analyzed period demonstrates a generally positive trend with some fluctuations. Initially, the ratio exhibits an increase from 1.15 to 1.28 between May 2021 and October 2021, indicating improving efficiency in asset utilization. A slight decrease to 1.27 is observed in January 2022, followed by a rise to 1.44 in July 2022, suggesting a strengthening ability to generate sales from its asset base. The ratio then experiences a moderate decline to 1.41 in October 2022, before increasing again to 1.53 in April 2023, representing a peak in asset utilization efficiency during the observed timeframe.
Subsequent quarters show a decrease to 1.47 in July 2023 and a slight increase to 1.53 in October 2023. A more noticeable decline to 1.36 is seen in January 2024, followed by a recovery to 1.48 in July 2024. The ratio then stabilizes around the 1.40-1.45 range through May 2025, before decreasing to 1.31 in February 2026. This final decrease suggests a potential weakening in the efficiency of asset utilization towards the end of the analyzed period.
- Overall Trend
- The overall trend is one of increasing asset turnover, peaking in April 2023, followed by a gradual decline. The ratio generally remains above 1.30 throughout the period, indicating effective asset management.
- Peak Performance
- The highest recorded ratio of 1.53 occurs in both April 2023 and October 2023, signifying the periods of greatest efficiency in converting assets into revenue. This suggests successful strategies in sales and inventory management during those quarters.
- Recent Performance
- The ratio’s decline from 1.45 in August 2025 to 1.31 in February 2026 warrants further investigation. This decrease could be attributed to increased investment in assets without a corresponding increase in revenue, or a slowdown in sales. The trend suggests a potential need to re-evaluate asset allocation and operational strategies.
- Volatility
- While generally positive, the ratio exhibits some quarterly volatility. This suggests that external factors or internal operational changes may be influencing the company’s ability to consistently generate revenue from its assets. Further analysis is needed to identify the drivers of these fluctuations.
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Equity Turnover
lululemon athletica inc., equity turnover calculation (quarterly data)
| Feb 1, 2026 | Nov 2, 2025 | Aug 3, 2025 | May 4, 2025 | Feb 2, 2025 | Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||
| Net revenue | 3,640,801) | 2,565,920) | 2,525,219) | 2,370,660) | 3,611,497) | 2,396,660) | 2,371,078) | 2,208,891) | 3,205,103) | 2,204,218) | 2,209,165) | 2,000,792) | 2,771,838) | 1,856,889) | 1,868,328) | 1,613,463) | 2,129,113) | 1,450,421) | 1,450,618) | 1,226,465) | ||||||
| Stockholders’ equity | 4,961,840) | 4,502,023) | 4,387,279) | 4,289,570) | 4,324,047) | 3,985,732) | 4,031,645) | 4,219,808) | 4,232,081) | 3,525,849) | 3,533,482) | 3,320,076) | 3,148,799) | 3,039,204) | 2,857,798) | 2,668,050) | 2,740,046) | 2,658,455) | 2,671,166) | 2,639,855) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 2.24 | 2.46 | 2.49 | 2.51 | 2.45 | 2.55 | 2.48 | 2.33 | 2.27 | 2.61 | 2.50 | 2.56 | 2.58 | 2.46 | 2.47 | 2.49 | 2.28 | 2.20 | 2.07 | 1.89 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Nike Inc. | — | — | 3.30 | 3.45 | 3.50 | 3.41 | 3.49 | 3.59 | 3.56 | 3.63 | 3.64 | 3.68 | 3.66 | 3.48 | 3.22 | 2.98 | 3.06 | 3.16 | 3.10 | 3.22 | ||||||
Based on: 10-K (reporting date: 2026-02-01), 10-Q (reporting date: 2025-11-02), 10-Q (reporting date: 2025-08-03), 10-Q (reporting date: 2025-05-04), 10-K (reporting date: 2025-02-02), 10-Q (reporting date: 2024-10-27), 10-Q (reporting date: 2024-07-28), 10-Q (reporting date: 2024-04-28), 10-K (reporting date: 2024-01-28), 10-Q (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-K (reporting date: 2023-01-29), 10-Q (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-K (reporting date: 2022-01-30), 10-Q (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02).
1 Q4 2026 Calculation
Equity turnover
= (Net revenueQ4 2026
+ Net revenueQ3 2026
+ Net revenueQ2 2026
+ Net revenueQ1 2026)
÷ Stockholders’ equity
= (3,640,801 + 2,565,920 + 2,525,219 + 2,370,660)
÷ 4,961,840 = 2.24
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, with some fluctuations. Initially, the ratio exhibits growth from 1.89 to 2.28, indicating increasing efficiency in generating revenue from stockholders’ equity. A peak is observed at 2.61, followed by a slight decline to 2.27, before recovering and stabilizing around the 2.45-2.55 range for several periods. The most recent periods show a decrease to 2.24, suggesting a potential shift in the relationship between revenue and equity.
- Overall Trend
- The equity turnover ratio generally increased from May 2021 through October 2022, suggesting improved efficiency in utilizing equity to generate sales. However, the ratio has shown some volatility in more recent periods, with a noticeable decline in the latest two reporting periods.
- Initial Growth Phase (May 2021 – January 2022)
- The ratio increased consistently from 1.89 to 2.28 during this period. This suggests that the company was becoming more effective at converting equity financing into revenue. The increase could be attributed to factors such as improved asset utilization, more effective sales strategies, or a combination of both.
- Peak and Subsequent Fluctuation (April 2022 – January 2023)
- The ratio reached its highest point of 2.61 in April 2023. Following this peak, the ratio experienced a decrease to 2.27, indicating a temporary reduction in the efficiency of equity utilization. The subsequent recovery to around 2.50 suggests a rebound in operational performance.
- Recent Performance (May 2024 – February 2026)
- The ratio has exhibited a downward trend in the most recent periods, decreasing from 2.45 to 2.24. This decline warrants further investigation to determine the underlying causes. Potential factors could include increased equity levels without a corresponding increase in revenue, or a decrease in revenue generation efficiency. The decrease in the latest period is particularly noteworthy.
The observed fluctuations in the equity turnover ratio suggest that the company’s ability to generate revenue from its equity base is not consistently increasing. While the overall trend has been positive, the recent decline indicates a potential need to reassess strategies related to asset utilization and revenue generation. Continued monitoring of this ratio is recommended to identify any further shifts and inform strategic decision-making.
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