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Wayfair (Wayfair) Asset Turnover : 0.91 (As of Dec. 2023)


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What is Wayfair Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Wayfair's Revenue for the three months ended in Dec. 2023 was $3,114 Mil. Wayfair's Total Assets for the quarter that ended in Dec. 2023 was $3,417 Mil. Therefore, Wayfair's Asset Turnover for the quarter that ended in Dec. 2023 was 0.91.

Asset Turnover is linked to ROE % through Du Pont Formula. Wayfair's annualized ROE % for the quarter that ended in Dec. 2023 was 25.71%. It is also linked to ROA % through Du Pont Formula. Wayfair's annualized ROA % for the quarter that ended in Dec. 2023 was -20.37%.


Wayfair Asset Turnover Historical Data

The historical data trend for Wayfair's Asset Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Wayfair Asset Turnover Chart

Wayfair Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.77 3.76 3.00 3.00 3.40

Wayfair Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Asset Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.86 0.82 0.96 0.87 0.91

Competitive Comparison of Wayfair's Asset Turnover

For the Internet Retail subindustry, Wayfair's Asset Turnover, along with its competitors' market caps and Asset Turnover data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Wayfair's Asset Turnover Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Wayfair's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Wayfair's Asset Turnover falls into.



Wayfair Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Wayfair's Asset Turnover for the fiscal year that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=12003/( (3580+3474)/ 2 )
=12003/3527
=3.40

Wayfair's Asset Turnover for the quarter that ended in Dec. 2023 is calculated as

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=3114/( (3360+3474)/ 2 )
=3114/3417
=0.91

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


Wayfair  (NYSE:W) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Wayfair's annulized ROE % for the quarter that ended in Dec. 2023 is

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-696/-2707.5
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-696 / 12456)*(12456 / 3417)*(3417/ -2707.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=-5.59 %*3.6453*-1.262
=ROA %*Equity Multiplier
=-20.37 %*-1.262
=25.71 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Wayfair's annulized ROA % for the quarter that ended in Dec. 2023 is

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=-696/3417
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-696 / 12456)*(12456 / 3417)
=Net Margin %*Asset Turnover
=-5.59 %*3.6453
=-20.37 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


Wayfair Asset Turnover Related Terms

Thank you for viewing the detailed overview of Wayfair's Asset Turnover provided by GuruFocus.com. Please click on the following links to see related term pages.


Wayfair (Wayfair) Business Description

Traded in Other Exchanges
Address
4 Copley Place, Boston, MA, USA, 02116
Wayfair engages in e-commerce in the United States (86% of 2022 sales), Canada, the United Kingdom, Germany, and Ireland. At the end of 2022, the firm offered more than 40 million products from more than 20,000 suppliers under the brands Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold. Its offerings include furniture, everyday and seasonal decor, decorative accents, housewares, and other home goods. Wayfair was founded in 2002 and began trading publicly in 2014.
Executives
Niraj Shah director, 10 percent owner, officer: Chief Executive Officer C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Steven Conine director, 10 percent owner, officer: Chief Technology Officer C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Thomas Netzer officer: Chief Operating Officer C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Jon Blotner officer: Chief Commercial Officer C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Kate Gulliver officer: CFO and Chief Admin Officer 4 COPLEY PLACE, BOSTON MA 02116
Fiona Tan officer: Chief Technology Officer 41 DISCOVERY, IRVINE CA 92618
Anke Schaferkordt director C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Steve Oblak officer: SVP and GM, Wayfair.com C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Michael D Fleisher officer: Chief Financial Officer C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Michael W. Choe director C/O CHARLESBANK CAPITAL PARTNERS, 200 CLARENDON STREET, 54TH FLOOR, BOSTON MA 02109
James R. Miller director 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040
Jeremy King director C/O WAYFAIR LLC, 4 COPLEY PLACE, BOSTON MA 02116
Michael Andrew Kumin director, 10 percent owner C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116
Edmond Macri officer: SVP, Marketing and Analytics C/O WAYFAIR INC., 4 COPLEY PLACE, BOSTON MA 02116
Michael E Sneed director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933