Total Asset Turnover
since 2013
Calculation
RH, total asset turnover, long-term trends, calculation
| Total asset turnover | = | Net revenues1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 0.68 | = | 3,590,477) | ÷ | 5,309,289) |
| Jan 29, 2022 | 0.68 | = | 3,758,820) | ÷ | 5,540,470) |
| Jan 30, 2021 | 0.98 | = | 2,848,626) | ÷ | 2,898,313) |
| Feb 1, 2020 | 1.08 | = | 2,647,437) | ÷ | 2,445,694) |
| Feb 2, 2019 | 1.39 | = | 2,505,653) | ÷ | 1,806,034) |
| Feb 3, 2018 | 1.41 | = | 2,440,174) | ÷ | 1,732,866) |
| Jan 28, 2017 | 0.97 | = | 2,134,871) | ÷ | 2,192,520) |
| Jan 30, 2016 | 1.01 | = | 2,109,006) | ÷ | 2,088,472) |
| Jan 31, 2015 | 1.22 | = | 1,867,422) | ÷ | 1,525,999) |
| Feb 1, 2014 | 1.51 | = | 1,550,961) | ÷ | 1,025,103) |
| Feb 2, 2013 | 1.51 | = | 1,193,046) | ÷ | 789,613) |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
1 US$ in thousands
The financial trajectory from 2013 to 2023 reveals a general decline in asset utilization efficiency, characterized by a significant reduction in the total asset turnover ratio despite a consistent increase in net revenues.
- Revenue and Asset Growth Trends
- Net revenues grew steadily from approximately 1.19 billion US dollars in 2013 to a peak of 3.76 billion US dollars in 2022, before slightly moderating to 3.59 billion US dollars in 2023. During the same period, total assets expanded more aggressively, rising from 789.6 million US dollars in 2013 to 5.31 billion US dollars in 2023. The most pronounced acceleration in asset growth occurred between 2021 and 2022, where total assets nearly doubled from 2.90 billion to 5.54 billion US dollars.
- Analysis of Total Asset Turnover Volatility
- The asset turnover ratio began at a high of 1.51 in 2013 and 2014, indicating high efficiency in generating sales per dollar of assets. A downward trend followed through 2017, reaching 0.97. A temporary recovery was observed in 2018 and 2019, with the ratio climbing back to 1.41 and 1.39, respectively. This spike corresponds with a period where total assets were reduced from 2.19 billion US dollars in 2017 to 1.73 billion US dollars in 2018 while revenues continued to scale.
- Recent Efficiency Deterioration
- Since 2020, a consistent decline in the turnover ratio has been observed, falling from 1.08 to a low of 0.68 by 2022 and remaining at that level in 2023. This deterioration indicates that the growth in the asset base has significantly outpaced revenue generation in recent years. The shift to a ratio of 0.68 represents a substantial decrease in operational efficiency compared to the historical average of the preceding decade.
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Comparison to Competitors
RH, total asset turnover, long-term trends, comparison to competitors
| RH | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 0.68 | 1.09 | 2.06 | 2.22 | 1.76 |
| Jan 29, 2022 | 0.68 | 1.11 | 2.10 | 2.16 | 1.71 |
| Jan 30, 2021 | 0.98 | 1.12 | 1.87 | 1.92 | 1.04 |
| Feb 1, 2020 | 1.08 | 1.20 | 2.15 | 1.83 | 1.73 |
| Feb 2, 2019 | 1.39 | 1.25 | 2.46 | 2.07 | 2.72 |
| Feb 3, 2018 | 1.41 | 1.43 | 2.27 | 1.94 | 2.55 |
| Jan 28, 2017 | 0.97 | 1.35 | 2.20 | 1.89 | 2.58 |
| Jan 30, 2016 | 1.01 | 1.63 | 2.08 | 1.89 | 2.69 |
| Jan 31, 2015 | 1.22 | 1.64 | 2.08 | 1.77 | 2.61 |
| Feb 1, 2014 | 1.51 | 1.63 | 1.95 | 1.63 | 2.69 |
| Feb 2, 2013 | 1.51 | 1.85 | 1.82 | 1.55 | 2.72 |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
RH, total asset turnover, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| RH | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 28, 2023 | 0.68 | 1.30 |
| Jan 29, 2022 | 0.68 | 1.33 |
| Jan 30, 2021 | 0.98 | 1.27 |
| Feb 1, 2020 | 1.08 | 1.40 |
| Feb 2, 2019 | 1.39 | 1.57 |
| Feb 3, 2018 | 1.41 | 1.71 |
| Jan 28, 2017 | 0.97 | 1.67 |
| Jan 30, 2016 | 1.01 | 1.86 |
| Jan 31, 2015 | 1.22 | 1.86 |
| Feb 1, 2014 | 1.51 | 1.80 |
| Feb 2, 2013 | 1.51 | 1.83 |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
Comparison to Industry (Consumer Discretionary)
RH, total asset turnover, long-term trends, comparison to industry (consumer discretionary)
| RH | Consumer Discretionary | |
|---|---|---|
| Jan 28, 2023 | 0.68 | 0.97 |
| Jan 29, 2022 | 0.68 | 0.96 |
| Jan 30, 2021 | 0.98 | 0.88 |
| Feb 1, 2020 | 1.08 | 0.84 |
| Feb 2, 2019 | 1.39 | 0.94 |
| Feb 3, 2018 | 1.41 | 0.96 |
| Jan 28, 2017 | 0.97 | 0.93 |
| Jan 30, 2016 | 1.01 | 0.96 |
| Jan 31, 2015 | 1.22 | 0.98 |
| Feb 1, 2014 | 1.51 | 1.02 |
| Feb 2, 2013 | 1.51 | 1.04 |
Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).