Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
RH, profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
The analysis of the quarterly financial metrics reveals distinct trends in profitability and efficiency ratios over the observed periods.
- Gross Profit Margin
- The gross profit margin exhibits a consistent upward trajectory from 36.58% initially to a peak of 51.39% in October 2022, indicating improving cost management or favorable pricing strategies. However, after this peak, a slight decline is observed, with the margin decreasing to 49.25% by April 2023.
- Operating Profit Margin
- The operating profit margin follows a similar pattern of growth, starting at 7.31% and rising to a maximum around 24.67% in January 2022. Following this peak, a gradual decline is evident, with the margin falling to 18.27% by the last period. This suggests that operating efficiency improvements have slowed down or operational costs have increased recently.
- Net Profit Margin
- The net profit margin shows a significant increase from a low base of 1.38% to a high of 19.68% in April 2022, reflecting enhanced overall profitability. Post this peak, a notable decrease occurs, with the margin dropping to 10.97% by April 2023. This reduction may be attributable to higher expenses, tax impacts, or other non-operating factors affecting net earnings.
- Return on Equity (ROE)
- The ROE data appears volatile with extreme values and several missing data points, which complicates trend analysis. However, when available, ROE spikes significantly, peaking at 1181.57%, before progressively decreasing to 44.06% in the latest quarter. Such volatility could point to fluctuations in earnings relative to shareholder equity, possibly influenced by one-time gains, equity changes, or financial leverage.
- Return on Assets (ROA)
- The ROA increased from 1.92% to a peak around 15.40% in July 2021, indicating improved asset utilization over time. After reaching this level, it displays a decreasing trend, declining to 6.95% in the most recent quarter. This decrease suggests diminished efficiency in generating earnings from assets in the later periods or increased asset base without equivalent profit growth.
Overall, the financial ratios point to a period of strengthening profitability and efficiency up to approximately early 2022, followed by a moderation or reversal in these gains. The margins and returns demonstrate a maturation phase with more modest performance in recent quarters compared to peak achievements. Attention to the declining trends in net and operating margins, as well as ROA and ROE, is warranted to assess sustainability and underlying causes.
Return on Sales
Return on Investment
Gross Profit Margin
RH, gross profit margin calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Gross profit | 347,545) | 369,406) | 420,778) | 523,218) | 498,583) | 455,504) | 505,254) | 487,676) | 406,977) | 385,128) | 408,330) | 332,419) | 199,654) | 283,073) | 284,166) | 294,958) | 232,814) | 262,701) | 254,511) | 271,600) | 212,035) | |||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | 49.25% | 50.47% | 51.01% | 51.39% | 50.50% | 49.36% | 48.66% | 48.15% | 47.51% | 46.53% | 45.29% | 43.37% | 41.94% | 41.36% | 40.50% | 40.00% | 40.12% | 39.94% | 39.79% | 38.87% | 36.58% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | 47.59% | 46.98% | 46.24% | 45.53% | 44.73% | 43.81% | 43.04% | 42.65% | 42.14% | 42.03% | 41.31% | 40.68% | 40.01% | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 33.51% | 33.53% | 33.51% | 33.53% | 33.58% | 33.63% | 33.72% | 33.72% | 33.94% | 33.95% | 34.03% | 34.10% | 34.06% | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 33.14% | 33.23% | 33.38% | 33.33% | 33.49% | 33.30% | 33.06% | 32.97% | 33.06% | 33.01% | 32.94% | 32.89% | 32.23% | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 27.85% | 27.61% | 27.92% | 28.03% | 28.45% | 28.50% | 28.78% | 28.91% | 27.61% | 23.66% | 23.97% | 23.61% | 25.04% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2024 Calculation
Gross profit margin = 100
× (Gross profitQ1 2024
+ Gross profitQ4 2023
+ Gross profitQ3 2023
+ Gross profitQ2 2023)
÷ (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
= 100 × (347,545 + 369,406 + 420,778 + 523,218)
÷ (739,162 + 772,499 + 869,066 + 991,620)
= 49.25%
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals significant trends in profitability and revenue generation over the observed periods.
- Gross Profit
- Gross profit shows notable fluctuations across quarters, with an initial range near the $200 million mark and a peak surpassing $500 million in late 2021 and mid-2022. The values exhibit an overall upward trend from 2018 through 2022, indicating improved cost management or increased sales efficiency. However, a decline is apparent in early 2023, reflecting possible market or operational challenges.
- Net Revenues
- Net revenues display a generally rising trajectory from mid-2018 to the end of 2021, growing from approximately $557 million to over $1 billion. This growth evidences expanded sales volume or higher pricing power. Starting in early 2022, revenues demonstrate some variability but maintain levels close to the $900 million to $1 billion range before decreasing towards the first quarter of 2023, suggesting some weakening in sales or demand.
- Gross Profit Margin
- The gross profit margin consistently increases over the entire period, moving from around 36.6% in mid-2018 to peaks exceeding 51% in late 2022. This steady margin improvement highlights enhanced operational efficiency or favorable product mix shifts, allowing the company to retain more profit per dollar of revenue. Some slight declines occur in the most recent quarters, though margins remain robust.
In summary, the financial data indicates a company experiencing solid growth in both top-line revenues and profitability efficiency over the examined timeframe. While recent quarters show some contraction in gross profit and revenues, the historical performance reflects strengthened gross margins and expanding sales. Monitoring ongoing market conditions and cost structures will be essential to sustain these positive trends.
Operating Profit Margin
RH, operating profit margin calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Income from operations | 99,240) | 112,205) | 170,250) | 234,414) | 205,288) | 217,766) | 272,539) | 248,988) | 187,888) | 183,616) | 111,221) | 136,568) | 35,453) | 100,980) | 89,237) | 103,981) | 68,633) | 103,238) | 47,016) | 85,375) | 53,601) | |||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | 18.27% | 20.11% | 22.25% | 24.11% | 24.50% | 24.67% | 24.34% | 20.87% | 19.19% | 16.39% | 14.22% | 14.29% | 13.02% | 13.70% | 13.76% | 12.36% | 11.95% | 11.54% | 10.18% | 10.21% | 7.31% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | 8.02% | 6.41% | 4.76% | 3.29% | 2.54% | 2.38% | 2.58% | 3.15% | 4.12% | 5.30% | 6.18% | 6.68% | 6.63% | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 15.19% | 15.27% | 15.33% | 15.30% | 15.20% | 15.24% | 15.10% | 14.79% | 14.70% | 13.84% | 14.01% | 13.99% | 13.85% | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 10.60% | 10.47% | 10.74% | 12.76% | 12.72% | 12.56% | 12.36% | 11.79% | 11.55% | 10.77% | 10.64% | 10.53% | 9.30% | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 9.82% | 9.73% | 9.76% | 9.77% | 10.18% | 9.79% | 9.55% | 9.32% | 7.05% | 1.81% | 3.13% | 3.26% | 5.86% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2024 Calculation
Operating profit margin = 100
× (Income from operationsQ1 2024
+ Income from operationsQ4 2023
+ Income from operationsQ3 2023
+ Income from operationsQ2 2023)
÷ (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
= 100 × (99,240 + 112,205 + 170,250 + 234,414)
÷ (739,162 + 772,499 + 869,066 + 991,620)
= 18.27%
2 Click competitor name to see calculations.
- Income from Operations
- Income from operations exhibits a fluctuating pattern with several periods of notable growth and decline. Initially, there is a significant increase from May 2018 to February 2019, reaching a peak of 103,238 thousand US dollars. Following this, a period of volatility is observed through 2020 with a pronounced drop in May 2020 to 35,453 thousand US dollars, likely influenced by market conditions during that time. From mid-2020 onwards, income from operations demonstrates a strong recovery, peaking at 272,539 thousand US dollars in October 2021. However, after this peak, it experiences a gradual downtrend through early 2023, ending at 99,240 thousand US dollars in April 2023.
- Net Revenues
- Net revenues show an overall upward trajectory from May 2018 through October 2021, with intermittent fluctuations. Starting at 557,406 thousand US dollars in May 2018, revenues grow steadily, reaching an all-time high of 1,006,428 thousand US dollars in October 2021. Thereafter, net revenues decline moderately but remain relatively elevated compared to the earlier part of the period, with values around 739,162 thousand US dollars as of April 2023. The pattern indicates strong growth phases interspersed with occasional contractions, suggesting sensitivity to market factors but maintaining a positive long-term trend.
- Operating Profit Margin
- The operating profit margin exhibits a consistent, strong upward trend over the entire timeframe. Beginning at 7.31% in May 2018, the margin improves steadily, surpassing 20% by late 2021 and peaking at 24.67% in January 2022. This sustained increase reflects improved operational efficiency or cost management despite fluctuations in absolute income and revenue figures. Subsequent quarters show a mild correction but margins remain significantly higher than the initial periods, indicating a more profitable operational structure overall.
- Summary
- The data indicates that while income from operations and net revenues experienced some volatility, especially around early 2020, the company has succeeded in substantially increasing its operating profit margin over the years. The considerable rise in profitability margins suggests better control of costs and enhanced operational leverage. Although recent quarters show a decline in income from operations and net revenues compared to their peaks, the profit margin remains robust, suggesting resilience in profitability despite lower revenues. The overall financial trend points to an improving profit structure amid fluctuations in sales and operational income.
Net Profit Margin
RH, net profit margin calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income (loss) | 41,890) | 106,896) | 98,760) | 122,275) | 200,711) | 147,045) | 184,099) | 226,746) | 130,656) | 130,193) | 46,411) | 98,423) | (3,212) | 68,433) | 52,463) | 63,757) | 35,722) | 36,127) | 22,411) | 64,042) | 28,059) | |||||||
| Net revenues | 739,162) | 772,499) | 869,066) | 991,620) | 957,292) | 902,741) | 1,006,428) | 988,859) | 860,792) | 812,436) | 844,013) | 709,282) | 482,895) | 664,976) | 677,526) | 706,514) | 598,421) | 670,891) | 636,558) | 640,798) | 557,406) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | 10.97% | 14.72% | 15.29% | 16.95% | 19.68% | 18.32% | 18.31% | 15.23% | 12.57% | 9.54% | 7.78% | 8.53% | 7.17% | 8.32% | 7.09% | 6.05% | 6.22% | 6.01% | 4.58% | 4.29% | 1.38% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | 6.38% | 5.29% | 3.62% | 2.43% | 0.82% | -0.53% | 2.25% | 2.39% | 4.48% | 7.10% | 5.73% | 6.64% | 6.42% | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 10.75% | 10.87% | 10.87% | 10.88% | 10.83% | 10.87% | 10.79% | 10.55% | 10.45% | 9.74% | 9.94% | 9.91% | 9.79% | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 6.65% | 6.63% | 6.97% | 8.84% | 8.85% | 8.77% | 8.63% | 7.41% | 7.23% | 6.51% | 6.29% | 7.12% | 6.17% | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 7.56% | 7.00% | 6.90% | 6.77% | 6.69% | 6.76% | 5.85% | 5.81% | 4.00% | 0.28% | 2.24% | 2.11% | 4.57% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2024 Calculation
Net profit margin = 100
× (Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023)
÷ (Net revenuesQ1 2024
+ Net revenuesQ4 2023
+ Net revenuesQ3 2023
+ Net revenuesQ2 2023)
= 100 × (41,890 + 106,896 + 98,760 + 122,275)
÷ (739,162 + 772,499 + 869,066 + 991,620)
= 10.97%
2 Click competitor name to see calculations.
The financial data reveals several notable trends across the analyzed periods. Net revenues exhibit a generally increasing trajectory from the earlier periods through mid-2021, peaking around the third quarter of 2021. After reaching its peak, revenues show fluctuations with a downward trend in the last few quarters observed.
Net income (loss) demonstrates more volatility compared to revenues. Early periods show positive earnings fluctuating in both magnitude and direction, with a significant negative net income reported in early 2020. Subsequently, net income recovers sharply and continues to rise, reaching its highest levels in 2021, indicating strong profitability during that timeframe. However, from late 2021 onwards, net income begins to decline, reflecting either increased costs, decreased revenues, or other operational challenges.
The net profit margin mirrors the pattern observed in net income, with a steady increase from low single digits to nearly 20% by mid-2022, suggesting improving efficiency or pricing power during this period. After peaking, the profit margin gradually decreases, which aligns with the recent downturn in net income despite fluctuating revenue figures.
- Net Revenues
- Gradual growth from early periods through mid-2021, with a peak around 1,006,428 thousand US$. Subsequently, revenues fluctuate with a slight declining trend through the latest period.
- Net Income (Loss)
- Volatile trends with an early loss recorded in 2020, followed by strong recovery and peak profitability in 2021. Recent quarters show a decline in net income, ending with a notable decrease by the last period observed.
- Net Profit Margin
- Progressive improvement from approximately 1.4% to nearly 20% suggests enhanced profitability or operational leverage over time. The margin declines after the peak period, moving towards mid to high teens percentage, indicating softer profit performance in the latest quarters.
Overall, the company experienced significant revenue growth and margin improvement through mid-2021, with exceptional profitability gains recorded at that peak. However, the subsequent periods reflect a moderation in financial results with decreasing earnings and profit margin, which could warrant further investigation into cost management, market conditions, or other factors affecting profitability despite relatively stable revenues.
Return on Equity (ROE)
RH, ROE calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income (loss) | 41,890) | 106,896) | 98,760) | 122,275) | 200,711) | 147,045) | 184,099) | 226,746) | 130,656) | 130,193) | 46,411) | 98,423) | (3,212) | 68,433) | 52,463) | 63,757) | 35,722) | 36,127) | 22,411) | 64,042) | 28,059) | |||||||
| Stockholders’ equity (deficit) | 839,386) | 784,661) | 1,293,947) | 1,220,244) | 1,341,790) | 1,170,277) | 1,021,375) | 836,858) | 594,462) | 447,026) | 296,869) | 128,491) | 19,132) | 18,651) | (63,220) | (177,918) | (247,373) | (22,962) | 32,020) | 146,061) | 8,642) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | 44.06% | 67.37% | 43.96% | 53.61% | 56.54% | 58.84% | 65.76% | 63.81% | 68.24% | 60.81% | 70.76% | 168.19% | 948.36% | 1,181.57% | — | — | — | — | 358.44% | 72.24% | 388.90% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | 17.39% | 15.07% | 10.97% | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 4,626.24% | 1,095.07% | 1,317.03% | 7,124.47% | — | — | 1,539.90% | 736.64% | 844.74% | 390.00% | 813.68% | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 59.20% | 54.97% | 60.02% | 62.26% | 59.63% | 54.69% | 41.40% | 39.21% | 24.63% | 1.55% | 13.47% | 15.26% | 35.54% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2024 Calculation
ROE = 100
× (Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023)
÷ Stockholders’ equity (deficit)
= 100 × (41,890 + 106,896 + 98,760 + 122,275)
÷ 839,386 = 44.06%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends in the company’s performance and financial position over the observed periods.
- Net Income (Loss)
- The net income demonstrates significant volatility throughout the timeline. Initially, net income fluctuates with moderate values, reaching a peak in August 2020 with a substantial positive figure. However, a notable loss occurred in May 2020. Following this period, the company experienced a strong recovery and growth trend, achieving its highest net income levels between early 2021 and mid-2021. After this peak, net income generally declined with some fluctuations, but remained positive through most recent quarters, suggesting continued profitability albeit at lower levels compared to the peak.
- Stockholders’ Equity (Deficit)
- Stockholders’ equity exhibits considerable variability and shows an overall upward trend across the periods. Beginning with a relatively low equity at the start, equity sharply increased by the mid-2018 period. Thereafter, equity experienced a dramatic decline, even turning negative in late 2018 through mid-2019, indicating financial distress or significant losses affecting retained earnings or capital structure.
- From late 2019 onward, there was a marked and consistent recovery in equity positions, growing substantially through 2021 and into early 2022. Although some fluctuations occurred afterward, equity remained at historically high levels compared to the earlier periods. This suggests successful capital management and possibly capital injections or retained earnings helped to strengthen financial stability.
- Return on Equity (ROE)
- ROE showed exceptionally high values in many quarters, indicative of strong returns relative to equity employed. Early periods displayed extremely volatile and very high ROE percentages, which could be influenced by the low or negative equity base during those times, inflating the ratio.
- Following the stabilization of equity levels in later periods, ROE values moderated but remained robust, mostly ranging between approximately 44% and 70%. This suggests that the company maintained efficient profitability in relation to shareholder equity, albeit without the extreme fluctuations seen earlier.
- General Observations
- The data indicates phases of financial instability and recovery, with early periods marked by fluctuations in equity and net income, including episodes of losses and negative equity. The strong recovery from late 2019 and sustained profitability thereafter demonstrate improved operational and financial management.
- The high ROE values throughout the timeline, particularly during periods of low equity, should be interpreted with caution as they may reflect distortions due to the denominator effect. Nevertheless, consistent positive net income and substantial equity growth highlight a positive trajectory in the company’s financial health over recent years.
Return on Assets (ROA)
RH, ROA calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net income (loss) | 41,890) | 106,896) | 98,760) | 122,275) | 200,711) | 147,045) | 184,099) | 226,746) | 130,656) | 130,193) | 46,411) | 98,423) | (3,212) | 68,433) | 52,463) | 63,757) | 35,722) | 36,127) | 22,411) | 64,042) | 28,059) | |||||||
| Total assets | 5,319,830) | 5,309,289) | 5,883,715) | 5,831,447) | 5,887,937) | 5,540,470) | 5,420,025) | 3,467,152) | 3,237,317) | 2,898,313) | 2,679,250) | 2,506,409) | 2,429,893) | 2,445,694) | 2,362,013) | 2,387,808) | 2,545,832) | 1,806,034) | 1,843,325) | 1,814,107) | 1,748,961) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | 6.95% | 9.96% | 9.67% | 11.22% | 12.88% | 12.43% | 12.39% | 15.40% | 12.53% | 9.38% | 7.84% | 8.62% | 7.47% | 9.01% | 7.96% | 6.62% | 6.22% | 8.34% | 6.23% | 5.82% | 1.92% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Amazon.com Inc. | 7.10% | 5.76% | 4.12% | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 21.92% | 22.38% | 22.24% | 22.27% | 21.57% | 22.86% | 21.82% | 21.54% | 20.35% | 18.23% | 18.66% | 18.67% | 18.68% | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 13.86% | 14.73% | 14.23% | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 13.25% | 12.34% | 11.96% | 12.40% | 12.04% | 11.53% | 8.87% | 8.73% | 4.99% | 0.29% | 2.38% | 2.68% | 6.63% | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).
1 Q1 2024 Calculation
ROA = 100
× (Net income (loss)Q1 2024
+ Net income (loss)Q4 2023
+ Net income (loss)Q3 2023
+ Net income (loss)Q2 2023)
÷ Total assets
= 100 × (41,890 + 106,896 + 98,760 + 122,275)
÷ 5,319,830 = 6.95%
2 Click competitor name to see calculations.
The analysis of the financial performance over the observed periods reveals several notable trends in the company's profitability, asset base, and return on assets (ROA).
- Net Income (Loss)
- The net income values show considerable variability across quarters, with a general trend of growth interrupted by occasional declines. Early periods display fluctuations, with net income ranging from approximately 22,000 to 68,000 thousand US dollars. A significant drop to a negative net income occurred around May 2020, reflecting a loss of about 3,212 thousand US dollars. Subsequently, there was a strong recovery, reaching peaks above 200,000 thousand US dollars in mid to late 2021, including a high of approximately 226,746 thousand US dollars. From 2022 onwards, net income experienced a downward correction but remained positive, ending the last period with roughly 41,890 thousand US dollars. This pattern suggests episodic volatility, possibly influenced by external factors, followed by robust recovery periods.
- Total Assets
- Total assets consistently increased throughout the observed timeframe, growing from approximately 1.75 billion US dollars in mid-2018 to over 5.3 billion US dollars by early 2023. The asset base more than tripled during this interval, exhibiting a steady expansion with no significant contractions. This growth indicates ongoing investment or acquisition activities contributing to the company's asset accumulation.
- Return on Assets (ROA)
- The ROA metric demonstrates a clear upward trajectory in the initial stages, rising from below 2% in early 2018 to a peak exceeding 15% in mid-2021. This progression reflects increasing efficiency in generating profits relative to the asset base. After the peak, ROA shows a gradual decline, descending to approximately 7% by early 2023. Despite this decline, the ROA remains substantially higher than the initial periods, indicating sustained improvement in asset utilization over the long term.
In summary, the company experienced substantial asset growth paired with improving profitability and efficiency as measured by ROA in the earlier years. The volatility in net income, including a significant loss in mid-2020, contrasts with the overall positive trend in financial performance. While ROA softened in the most recent periods, it remains elevated compared to the baseline, suggesting continued effective management of assets to generate returns despite short-term earnings fluctuations.