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)
TJX Cos. Inc., long-term (investment) activity ratios (quarterly data)
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
The investment activity ratios demonstrate varying trends over the analyzed period. Generally, a peak in efficiency metrics occurred around the first half of 2022, followed by a gradual decline through the subsequent quarters. This suggests a potential shift in the company’s asset utilization strategies or external factors impacting sales relative to asset base.
- Net Fixed Asset Turnover
- This ratio exhibits a clear upward trend from May 2021 to January 2022, increasing from 7.46 to 9.21. Following this peak, the ratio experiences a consistent, albeit moderate, decline, reaching 7.34 by January 2026. This indicates that the company initially became more efficient in generating revenue from its fixed assets, but this efficiency has diminished over time. The rate of decline appears to accelerate slightly in the later periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- Similar to the standard net fixed asset turnover, this ratio also shows an increasing trend until January 2022, rising from 2.66 to 3.44. The subsequent period is characterized by a relatively stable, but slightly decreasing, trend, ending at 3.25 in January 2026. The inclusion of operating leases and right-of-use assets results in a significantly lower turnover ratio, reflecting the impact of these long-term obligations on asset utilization. The fluctuations are less pronounced than those observed in the standard net fixed asset turnover.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a strong upward trajectory from May 2021 (1.25) to April 2022 (1.80). While remaining relatively high, the ratio then fluctuates between approximately 1.72 and 1.85 for several quarters before beginning a gradual decline. By January 2026, the ratio stands at 1.69, indicating a slight decrease in the company’s ability to generate sales from its total asset base. The overall trend suggests a period of improved asset utilization followed by stabilization and a minor reduction.
- Equity Turnover
- This ratio mirrors the general pattern observed in the other ratios, with a substantial increase from 6.16 in May 2021 to 9.20 in July 2022. A consistent downward trend is then observed, culminating in a value of 5.92 in January 2026. This suggests that the company is generating less revenue for each dollar of equity invested, potentially indicating a decrease in the return on equity or an increase in equity relative to revenue. The decline is more pronounced in the later periods of the analysis.
In summary, the analyzed ratios suggest a period of increasing asset efficiency peaking in 2022, followed by a consistent, though not dramatic, decline. This trend warrants further investigation to determine the underlying causes and potential implications for future performance.
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Net Fixed Asset Turnover
TJX Cos. Inc., net fixed asset turnover calculation (quarterly data)
| Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | ||||||
| Net property at cost | 8,220) | 7,926) | 7,775) | 7,554) | 7,346) | 7,136) | 6,968) | 6,622) | 6,571) | 6,262) | 6,166) | 5,899) | 5,783) | 5,573) | 5,390) | 5,289) | 5,271) | 5,165) | 5,107) | 5,068) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover1 | 7.34 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 1.87 | 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 | ||||||
| Home Depot Inc. | 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 | ||||||
| Lowe’s Cos. Inc. | 4.70 | 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 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q4 2026 Calculation
Net fixed asset turnover
= (Net salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Net property at cost
= (17,743 + 15,117 + 14,401 + 13,111)
÷ 8,220 = 7.34
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 growth, peaking in the first half of 2022, before entering a period of sustained decrease. This suggests a changing relationship between net sales and net fixed assets.
- Initial Growth (May 2021 – April 2022)
- The net fixed asset turnover ratio increased from 7.46 in May 2021 to 9.43 in April 2022. This indicates that the company was becoming more efficient in generating sales from its fixed assets during this timeframe. The increase suggests effective utilization of existing assets or potentially a faster rate of sales growth relative to fixed asset investment.
- Peak and Subsequent Decline (July 2022 – May 2024)
- Following the peak in April 2022, the ratio experienced a decline, fluctuating between 8.25 and 9.21 through October 2022, then decreasing to 8.29 by May 2024. This suggests a potential slowdown in sales growth relative to the company’s fixed asset base, or an increase in fixed assets without a corresponding increase in sales. The fluctuations within this period indicate some instability in the relationship.
- Continued Downward Trend (July 2024 – January 2026)
- The ratio continued its downward trajectory from July 2024 through January 2026, falling from 7.98 to 7.34. This consistent decline suggests a more pronounced shift in the efficiency of asset utilization. The ratio’s lowest point is observed in January 2026. This could be attributed to increased investment in fixed assets, slower sales growth, or a combination of both.
- Overall Trend
- The overall trend reveals a decrease in the efficiency with which fixed assets are used to generate sales. While initial periods showed improvement, the latter portion of the observed timeframe demonstrates a consistent reduction in the net fixed asset turnover ratio. This warrants further investigation into the underlying drivers of this trend, such as capital expenditure patterns and sales performance.
The observed fluctuations suggest that external factors or internal strategic decisions may be influencing the relationship between sales and fixed assets. A continued monitoring of this ratio, alongside other financial metrics, is recommended to gain a more comprehensive understanding of the company’s operational efficiency.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
TJX Cos. Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation (quarterly data)
| Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | ||||||
| Net property at cost | 8,220) | 7,926) | 7,775) | 7,554) | 7,346) | 7,136) | 6,968) | 6,622) | 6,571) | 6,262) | 6,166) | 5,899) | 5,783) | 5,573) | 5,390) | 5,289) | 5,271) | 5,165) | 5,107) | 5,068) | ||||||
| Operating lease right of use assets | 10,330) | 10,039) | 9,978) | 9,924) | 9,641) | 9,570) | 9,513) | 9,499) | 9,396) | 9,289) | 9,406) | 9,177) | 9,086) | 8,986) | 8,987) | 9,067) | 8,854) | 9,144) | 9,183) | 9,122) | ||||||
| Net property at cost (including operating lease, right-of-use asset) | 18,550) | 17,965) | 17,753) | 17,478) | 16,987) | 16,706) | 16,481) | 16,121) | 15,967) | 15,551) | 15,572) | 15,076) | 14,869) | 14,558) | 14,376) | 14,356) | 14,125) | 14,309) | 14,291) | 14,189) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 3.25 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 1.53 | 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 | ||||||
| Home Depot Inc. | 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 | ||||||
| Lowe’s Cos. Inc. | 3.81 | 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 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
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 at cost (including operating lease, right-of-use asset)
= (17,743 + 15,117 + 14,401 + 13,111)
÷ 18,550 = 3.25
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, incorporating operating leases and right-of-use assets, demonstrates a generally stable performance over the analyzed period, with some fluctuation. Initially, the ratio exhibits an upward trend, followed by a period of relative stabilization and then a slight decline towards the end of the observation window.
- Initial Trend (May 2021 – January 2022)
- From May 2021 to January 2022, the net fixed asset turnover ratio increased consistently, moving from 2.66 to 3.44. This indicates improving efficiency in generating net sales from the company’s net fixed assets during this timeframe. The increase suggests a more effective utilization of assets to drive revenue.
- Stabilization and Fluctuation (April 2022 – October 2023)
- Following the peak in January 2022, the ratio experienced a period of stabilization with some quarterly variation. It ranged between 3.29 and 3.47 over the subsequent seven quarters. While not exhibiting strong growth, the ratio remained at a relatively high level, suggesting continued efficient asset utilization. A slight dip to 3.29 in April 2023 is observed, but it recovers to 3.36 in the following quarter.
- Recent Trend (February 2024 – May 2025)
- From February 2024 through May 2025, a subtle downward trend emerges. The ratio decreased from 3.40 to 3.26. This suggests a slight decrease in the efficiency of asset utilization. While the decline is not substantial, it warrants monitoring to determine if it represents a temporary fluctuation or the beginning of a more pronounced trend.
- Latest Period (August 2025 – January 2026)
- The most recent data points show a slight recovery to 3.28 in November 2025, followed by a decrease to 3.25 in January 2026. This continues the pattern of recent fluctuation and suggests that the ratio is currently stabilizing at a lower level than observed in earlier periods.
Overall, the net fixed asset turnover ratio indicates a generally efficient use of fixed assets to generate sales. The recent slight decline, however, suggests a potential need for further investigation into factors affecting asset utilization.
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Total Asset Turnover
TJX Cos. Inc., total asset turnover calculation (quarterly data)
| Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | ||||||
| Total assets | 35,767) | 35,188) | 32,885) | 31,858) | 31,749) | 32,436) | 30,555) | 29,679) | 29,747) | 30,351) | 28,922) | 28,681) | 28,349) | 28,428) | 27,091) | 27,710) | 28,461) | 30,071) | 28,783) | 30,301) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Total asset turnover1 | 1.69 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 0.81 | 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 | ||||||
| Home Depot Inc. | 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 | ||||||
| Lowe’s Cos. Inc. | 1.59 | 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 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q4 2026 Calculation
Total asset turnover
= (Net salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Total assets
= (17,743 + 15,117 + 14,401 + 13,111)
÷ 35,767 = 1.69
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a generally increasing trend over the observed period, with some fluctuations. Initially, the ratio stood at 1.25, and generally increased to a peak of 1.83 before stabilizing and experiencing a slight decline towards the end of the period.
- Initial Increase (May 2021 – July 2022)
- From May 2021 to July 2022, the total asset turnover ratio demonstrated consistent growth, rising from 1.25 to 1.83. This indicates an improving efficiency in utilizing assets to generate sales revenue during this timeframe. The increase suggests the company was becoming more effective at converting its investments in assets into revenue.
- Subsequent Stabilization and Decline (October 2022 – January 2026)
- Following the peak in July 2022, the ratio experienced some volatility, fluctuating between 1.72 and 1.85. A slight downward trend is then observed from November 2025, concluding at 1.69 in January 2026. While remaining at a relatively high level, this suggests a potential decrease in asset utilization efficiency towards the end of the analyzed period.
- Quarterly Variations
- The ratio consistently remained above 1.50 throughout the majority of the period. Seasonal variations appear to influence the ratio, with generally higher values observed in the quarters containing peak sales periods. For example, the ratio peaked in July 2022 and again in February 2024, coinciding with potential seasonal demand.
- Overall Trend
- Despite the fluctuations, the overall trend indicates an improvement in asset turnover from 2021 to 2022, followed by a period of relative stability and a minor decline. The ratio consistently indicates that for every dollar of assets, approximately $1.70 to $1.80 of sales were generated during much of the period.
The observed patterns suggest a generally efficient asset management strategy, although the recent slight decline warrants further investigation to determine if it represents a temporary fluctuation or the beginning of a more significant trend.
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Equity Turnover
TJX Cos. Inc., equity turnover calculation (quarterly data)
| Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||
| Net sales | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | ||||||
| Shareholders’ equity | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||
| Equity turnover1 | 5.92 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | 1.68 | 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 | ||||||
| Home Depot Inc. | 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 | ||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 212.01 | ||||||
Based on: 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 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).
1 Q4 2026 Calculation
Equity turnover
= (Net salesQ4 2026
+ Net salesQ3 2026
+ Net salesQ2 2026
+ Net salesQ1 2026)
÷ Shareholders’ equity
= (17,743 + 15,117 + 14,401 + 13,111)
÷ 10,190 = 5.92
2 Click competitor name to see calculations.
The equity turnover ratio for the analyzed period demonstrates a generally declining trend, although with notable fluctuations. Initially, the ratio exhibited growth, peaking in the first half of 2022, before entering a period of consistent decrease through the end of the observed timeframe.
- Initial Growth Phase (May 2021 – July 2022)
- The equity turnover ratio increased from 6.16 to 9.20 over the initial eight quarters. This suggests that the company was becoming increasingly efficient in generating net sales from its shareholders’ equity during this period. The most significant increase occurred between May 2021 and January 2022, potentially indicating a successful period of sales growth relative to equity.
- Stabilization and Decline (October 2022 – August 2025)
- Following the peak in July 2022, the ratio experienced a gradual decline, moving from 8.70 to 6.53. While there were minor variations within this timeframe, the overall trend is demonstrably downward. This indicates that the company’s ability to generate sales from its equity base was diminishing. The rate of decline appears to accelerate in the later quarters of this period.
- Recent Trend (November 2025 – August 2025)
- The most recent observations show a continued decrease in the equity turnover ratio, falling to 5.92 and then to 6.30. This suggests that the trend of decreasing sales generation from equity is persisting. The slight increase from 5.92 to 6.30 may represent a temporary stabilization or a minor fluctuation, but the overall direction remains negative.
The observed pattern suggests a potential shift in the company’s operational efficiency or capital structure. Further investigation would be required to determine the underlying causes of this trend, such as changes in asset utilization, profitability, or financial leverage. The declining ratio warrants monitoring to assess its potential impact on long-term financial performance.
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