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)
Home Depot 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 long-term investment activity ratios demonstrate varied performance over the observed period. Generally, the ratios exhibit fluctuations, with some indicators showing a declining trend in more recent quarters. The analysis below details observations for each ratio.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio generally increased from 5.73 in May 2021 to a peak of 6.23 in October 2022. Following this peak, the ratio experienced a slight decline, reaching 5.84 in January 2024, before showing some recovery to 6.08 in May 2025. The most recent observation in February 2026 shows a value of 5.88. This suggests a period of increasing efficiency in utilizing fixed assets, followed by a stabilization and slight decrease, with a recent modest increase.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This ratio also demonstrated an upward trend from 4.63 in May 2021 to 4.95 in October 2022. However, the subsequent period reveals a more pronounced downward trend, falling to 4.42 in February 2026. The decline is more significant than that observed in the standard net fixed asset turnover ratio, potentially indicating that the inclusion of operating lease obligations is impacting asset utilization efficiency. The ratio shows a slight recovery from 4.49 in January 2024 to 4.52 in May 2025, but this is not enough to offset the overall downward trajectory.
- Total Asset Turnover
- The total asset turnover ratio initially increased from 1.95 in May 2021 to 2.10 in January 2022. It then fluctuated around the 2.0 level for several quarters before experiencing a substantial decline beginning in May 2022. By July 2024, the ratio reached 1.57, representing a significant decrease in the efficiency of asset utilization. A slight recovery to 1.66 in May 2025 was followed by a further decline to 1.57 in February 2026. This suggests a weakening ability to generate sales from its total asset base.
- Equity Turnover
- The equity turnover ratio exhibits the most volatility of the observed ratios. It began at 80.86 in May 2021, experienced a large spike to 655.02 in July 2022, and then fluctuated considerably. The ratio decreased to 12.85 in February 2026. The extreme values and fluctuations suggest significant changes in the relationship between sales and shareholder equity, potentially driven by share repurchases, dividend payouts, or substantial changes in profitability. The recent decline indicates a reduced ability to generate sales relative to the equity invested.
In summary, while initial periods showed improvements in asset utilization, more recent quarters indicate a weakening trend in the efficiency of converting assets into sales. The decline is particularly noticeable in the total asset turnover and equity turnover ratios. The inclusion of operating leases appears to exacerbate the decline in net fixed asset turnover. Further investigation into the underlying drivers of these trends is warranted.
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Net Fixed Asset Turnover
Home Depot 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 millions) | ||||||||||||||||||||||||||
| Net sales | 38,198) | 41,352) | 45,277) | 39,856) | 39,704) | 40,217) | 43,175) | 36,418) | 34,786) | 37,710) | 42,916) | 37,257) | 35,831) | 38,872) | 43,792) | 38,908) | 35,719) | 36,820) | 41,118) | 37,500) | ||||||
| Net property and equipment | 28,021) | 27,683) | 26,896) | 26,780) | 26,702) | 26,573) | 26,640) | 25,997) | 26,154) | 25,735) | 25,879) | 25,674) | 25,631) | 25,240) | 25,247) | 25,166) | 25,199) | 24,935) | 24,750) | 24,673) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 5.88 | 6.00 | 6.14 | 6.08 | 5.97 | 5.82 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 2.01 | 2.13 | 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 | ||||||
| Lowe’s Cos. Inc. | — | 4.60 | 4.72 | 4.72 | 4.74 | 4.76 | 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 | ||||||
| TJX Cos. Inc. | — | 7.44 | 7.45 | 7.54 | 7.67 | 7.91 | 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 | ||||||
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 salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Net property and equipment
= (38,198 + 41,352 + 45,277 + 39,856)
÷ 28,021 = 5.88
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits a generally increasing trend over the observed period, followed by a stabilization and slight decline in more recent quarters. Initial values indicate a ratio of 5.73, which progressively rose to a peak of 6.23 before experiencing some fluctuation. The most recent reported value is 5.88, suggesting a potential shift in the relationship between net sales and net property and equipment.
- Overall Trend
- From May 2021 through October 2022, the ratio demonstrates consistent growth, increasing from 5.73 to 6.23. This indicates that the company was becoming increasingly efficient in generating sales from its fixed assets. However, the rate of increase slowed in later periods.
- Fluctuations and Recent Performance
- Following the peak in October 2022, the ratio experienced a slight decrease to 6.14 in January 2023, followed by a period of relative stability between 6.07 and 6.14 through August 2025. The ratio then decreased to 6.00 in November 2025 and further to 5.88 in February 2026. This recent decline warrants further investigation to determine the underlying causes.
- Peak and Trough Values
- The highest recorded ratio was 6.23 in October 2022, representing the most efficient use of fixed assets during the analyzed timeframe. The lowest ratio was 5.73 in May 2021, indicating a comparatively lower level of sales generation per dollar of fixed assets at that time.
- Long-Term Stability
- Despite the initial growth and recent decline, the ratio has largely remained within a relatively narrow band between 5.71 and 6.23 for the majority of the observed period. This suggests a degree of operational consistency in how the company utilizes its fixed assets to generate revenue.
The observed trend suggests that while the company initially improved its efficiency in utilizing fixed assets, recent quarters indicate a potential weakening of this relationship. Monitoring this ratio closely in future periods will be crucial to understanding whether this represents a temporary fluctuation or a more significant shift in operational performance.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Home Depot 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 millions) | ||||||||||||||||||||||||||
| Net sales | 38,198) | 41,352) | 45,277) | 39,856) | 39,704) | 40,217) | 43,175) | 36,418) | 34,786) | 37,710) | 42,916) | 37,257) | 35,831) | 38,872) | 43,792) | 38,908) | 35,719) | 36,820) | 41,118) | 37,500) | ||||||
| Net property and equipment | 28,021) | 27,683) | 26,896) | 26,780) | 26,702) | 26,573) | 26,640) | 25,997) | 26,154) | 25,735) | 25,879) | 25,674) | 25,631) | 25,240) | 25,247) | 25,166) | 25,199) | 24,935) | 24,750) | 24,673) | ||||||
| Operating lease right-of-use assets | 9,204) | 9,041) | 8,662) | 8,699) | 8,592) | 8,521) | 8,613) | 7,913) | 7,884) | 7,071) | 7,139) | 6,931) | 6,941) | 6,523) | 6,132) | 5,980) | 5,968) | 5,903) | 5,960) | 5,864) | ||||||
| Net property and equipment (including operating lease, right-of-use asset) | 37,225) | 36,724) | 35,558) | 35,479) | 35,294) | 35,094) | 35,253) | 33,910) | 34,038) | 32,806) | 33,018) | 32,605) | 32,572) | 31,763) | 31,379) | 31,146) | 31,167) | 30,838) | 30,710) | 30,537) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.42 | 4.53 | 4.64 | 4.59 | 4.52 | 4.41 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.62 | 1.69 | 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 | ||||||
| Lowe’s Cos. Inc. | — | 3.72 | 3.87 | 3.88 | 3.91 | 3.92 | 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 | ||||||
| TJX Cos. Inc. | — | 3.28 | 3.26 | 3.26 | 3.32 | 3.38 | 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 | ||||||
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 salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Net property and equipment (including operating lease, right-of-use asset)
= (38,198 + 41,352 + 45,277 + 39,856)
÷ 37,225 = 4.42
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using net property, plant, and equipment including operating lease and right-of-use assets, demonstrates a generally stable, albeit slightly declining, trend over the analyzed period. Initially, the ratio exhibited an increasing pattern, followed by a period of fluctuation and a more pronounced downward trend towards the end of the observation window.
- Initial Increasing Trend (May 2021 – August 2021)
- The ratio began at 4.63 and increased to 4.70. This initial increase suggests improving efficiency in utilizing fixed assets to generate sales during this period. The increase, while present, was relatively modest.
- Peak and Stabilization (October 2021 – July 2022)
- The ratio continued to climb, peaking at 4.95 in July 2022. Following this peak, the ratio remained relatively stable, fluctuating between 4.79 and 4.95 for four consecutive quarters. This suggests a sustained level of efficiency in asset utilization.
- Downward Trend (October 2022 – February 2026)
- Beginning in October 2022, a downward trend became apparent. The ratio decreased from 4.95 to 4.42 by February 2026. This decline indicates that the company is generating less revenue for each dollar invested in fixed assets. The rate of decline appears to accelerate in the latter half of this period.
- Recent Fluctuations (March 2024 – February 2026)
- Within the overall downward trend, there are minor fluctuations. The ratio increased slightly to 4.52 in May 2025, before resuming its decline. This suggests that short-term factors may be influencing asset turnover, but the long-term trajectory remains downward.
- Magnitude of Change
- Over the entire period, the ratio decreased from 4.63 to 4.42, representing a total decrease of approximately 4.5%. While not a dramatic shift, the consistent downward movement warrants further investigation to understand the underlying causes. The most significant declines occurred between October 2023 and January 2024, and again between November 2025 and February 2026.
The observed trend suggests a potential decrease in the efficiency of fixed asset utilization. Management should investigate factors contributing to this decline, such as changes in sales strategy, increased investment in less productive assets, or a slowdown in sales growth relative to the asset base. Further analysis, considering industry benchmarks and competitor performance, is recommended.
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Total Asset Turnover
Home Depot 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 millions) | ||||||||||||||||||||||||||
| Net sales | 38,198) | 41,352) | 45,277) | 39,856) | 39,704) | 40,217) | 43,175) | 36,418) | 34,786) | 37,710) | 42,916) | 37,257) | 35,831) | 38,872) | 43,792) | 38,908) | 35,719) | 36,820) | 41,118) | 37,500) | ||||||
| Total assets | 105,095) | 106,274) | 100,049) | 99,157) | 96,119) | 97,264) | 96,846) | 79,230) | 76,530) | 75,577) | 76,387) | 76,386) | 76,445) | 76,866) | 75,825) | 76,567) | 71,876) | 73,031) | 70,769) | 72,567) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 1.57 | 1.56 | 1.65 | 1.64 | 1.66 | 1.59 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.88 | 0.95 | 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 | ||||||
| Lowe’s Cos. Inc. | — | 1.58 | 1.79 | 1.83 | 1.94 | 1.87 | 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 | ||||||
| TJX Cos. Inc. | — | 1.68 | 1.76 | 1.79 | 1.78 | 1.74 | 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 | ||||||
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 salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Total assets
= (38,198 + 41,352 + 45,277 + 39,856)
÷ 105,095 = 1.57
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally stable pattern over the analyzed period, with a noticeable shift beginning in the latter half of 2022. Initially, the ratio fluctuates within a narrow range, indicating consistent efficiency in generating sales from its asset base. However, a discernible downward trend emerges from late 2022 through the end of the observed period.
- Initial Period (May 2021 – October 2022)
- From May 2021 to October 2022, the total asset turnover ratio remained relatively consistent, ranging between 1.95 and 2.10. This suggests a stable relationship between net sales and total assets during this timeframe. Minor fluctuations likely reflect seasonal sales patterns or short-term changes in asset composition. The highest value of 2.10 was recorded in January 2022.
- Downward Trend (January 2023 – February 2026)
- Beginning in January 2023, the ratio began a consistent decline. It decreased from 2.06 to 1.57 by July 2024. While there were minor recoveries in subsequent quarters (reaching 1.66 in February 2025), the ratio did not return to levels observed in the earlier period. The final recorded value in February 2026 is 1.57, indicating a sustained reduction in asset turnover efficiency.
- Asset and Sales Relationship
- While net sales experienced fluctuations, they generally remained within a comparable range throughout the period. The primary driver of the declining asset turnover ratio appears to be the significant increase in total assets, particularly from May 2022 onwards. The substantial asset growth, without a corresponding proportional increase in net sales, resulted in a lower ratio, signifying reduced efficiency in utilizing assets to generate revenue.
- Recent Performance (August 2025 – February 2026)
- The most recent data points show the ratio stabilizing around 1.56-1.57. This suggests the rate of decline may be slowing, but the ratio remains considerably lower than its historical levels. Further monitoring is needed to determine if this represents a new normal or a temporary plateau before a continued decline.
In summary, the company demonstrated consistent asset utilization efficiency until late 2022. The subsequent increase in total assets, coupled with relatively stable net sales, led to a noticeable and sustained decrease in the total asset turnover ratio. This trend warrants further investigation to understand the underlying causes of asset growth and its impact on overall operational efficiency.
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Equity Turnover
Home Depot 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 millions) | ||||||||||||||||||||||||||
| Net sales | 38,198) | 41,352) | 45,277) | 39,856) | 39,704) | 40,217) | 43,175) | 36,418) | 34,786) | 37,710) | 42,916) | 37,257) | 35,831) | 38,872) | 43,792) | 38,908) | 35,719) | 36,820) | 41,118) | 37,500) | ||||||
| Stockholders’ equity (deficit) | 12,813) | 12,116) | 10,665) | 7,955) | 6,640) | 5,786) | 4,420) | 1,820) | 1,044) | 1,430) | 1,335) | 362) | 1,562) | 1,298) | 237) | (1,709) | (1,696) | 1,035) | 2,069) | 1,748) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 12.85 | 13.72 | 15.48 | 20.48 | 24.02 | 26.72 | 34.41 | 83.42 | 146.23 | 107.49 | 116.01 | 430.25 | 100.77 | 121.18 | 655.02 | — | — | 142.70 | 69.80 | 80.86 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.74 | 1.87 | 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 | ||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 212.01 | ||||||
| TJX Cos. Inc. | — | 6.30 | 6.53 | 6.70 | 6.72 | 6.90 | 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 | ||||||
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 salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Stockholders’ equity (deficit)
= (38,198 + 41,352 + 45,277 + 39,856)
÷ 12,813 = 12.85
2 Click competitor name to see calculations.
The equity turnover ratio exhibits substantial fluctuation over the observed period. Initially, the ratio demonstrates a decrease from 80.86 to 69.80, followed by a significant spike to 142.70. Subsequent periods show considerable volatility, with a peak of 655.02 before declining and stabilizing within a range of approximately 100 to 146. More recently, the ratio has trended downwards, reaching 12.85 and 13.72 before a slight increase to 15.48. The latest reported value is 20.48.
- Initial Period (May 2, 2021 – Oct 31, 2021)
- The initial period shows a decrease in equity turnover, followed by a dramatic increase. This suggests a period of initially lower sales relative to equity, followed by a substantial surge in sales compared to the equity base. The large increase could be due to a temporary surge in sales or a significant reduction in equity.
- Volatility and Peak (Nov 2, 2021 – Oct 30, 2022)
- Following the peak, the ratio experiences considerable volatility. The extremely high value of 655.02 is followed by a decline, but remains relatively elevated compared to the initial values. This period suggests inconsistent performance in generating sales relative to equity. The fluctuations could be linked to seasonal sales patterns or changes in financial leverage.
- Recent Downward Trend (Jan 29, 2023 – Feb 1, 2026)
- The most recent period is characterized by a consistent downward trend in equity turnover. The ratio declines from 146.23 to 12.85, before a slight recovery to 20.48. This indicates a decreasing efficiency in utilizing equity to generate sales. This could be attributed to slower sales growth, an increase in equity, or a combination of both. The recent values are significantly lower than those observed in the earlier periods, suggesting a fundamental shift in the relationship between sales and equity.
The significant fluctuations in the equity turnover ratio warrant further investigation. Understanding the underlying drivers of these changes – whether related to sales performance, equity management, or broader economic factors – is crucial for assessing the company’s financial health and operational efficiency.
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