GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » The RealReal Inc (NAS:REAL) » Definitions » Asset Turnover

The RealReal (The RealReal) Asset Turnover : 0.32 (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is The RealReal Asset Turnover?

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. The RealReal's Revenue for the three months ended in Dec. 2023 was $143.4 Mil. The RealReal's Total Assets for the quarter that ended in Dec. 2023 was $449.8 Mil. Therefore, The RealReal's Asset Turnover for the quarter that ended in Dec. 2023 was 0.32.

Asset Turnover is linked to ROE % through Du Pont Formula. The RealReal's annualized ROE % for the quarter that ended in Dec. 2023 was 29.25%. It is also linked to ROA % through Du Pont Formula. The RealReal's annualized ROA % for the quarter that ended in Dec. 2023 was -19.29%.


The RealReal Asset Turnover Historical Data

The historical data trend for The RealReal'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.

The RealReal Asset Turnover Chart

The RealReal Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Asset Turnover
Get a 7-Day Free Trial 1.05 0.56 0.69 0.88 1.03

The RealReal 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 0.26 0.25 0.27 0.29 0.32

Competitive Comparison of The RealReal's Asset Turnover

For the Luxury Goods subindustry, The RealReal'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.


The RealReal's Asset Turnover Distribution in the Retail - Cyclical Industry

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

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



The RealReal Asset Turnover Calculation

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

The RealReal'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 )
=549.304/( (615.641+446.923)/ 2 )
=549.304/531.282
=1.03

The RealReal'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 )
=143.373/( (452.681+446.923)/ 2 )
=143.373/449.802
=0.32

* 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.


The RealReal  (NAS:REAL) Asset Turnover Explanation

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

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

ROE %**(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-86.772/-296.659
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-86.772 / 573.492)*(573.492 / 449.802)*(449.802/ -296.659)
=Net Margin %*Asset Turnover*Equity Multiplier
=-15.13 %*1.275*-1.5162
=ROA %*Equity Multiplier
=-19.29 %*-1.5162
=29.25 %

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:

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

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=-86.772/449.802
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-86.772 / 573.492)*(573.492 / 449.802)
=Net Margin %*Asset Turnover
=-15.13 %*1.275
=-19.29 %

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.


The RealReal Asset Turnover Related Terms

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


The RealReal (The RealReal) Business Description

Traded in Other Exchanges
Address
55 Francisco Street, Suite 400, San Francisco, CA, USA, 94133
The RealReal is the largest luxury resale platform in the U.S., generating $1.8 billion in 2022 gross merchandise volume and addressing a niche (personal luxury resale) that had previously been serviced by inefficient upscale boutiques and local pawn shops. The firm generates revenue via consignment and first-party sales on its online marketplace, and through direct sales across its brick-and-mortar footprint. With a hands-on approach that actively sources inventory and authenticates every item on its platform, The RealReal is able to justify much higher take rates than peers, working out to roughly 35% of net merchandise value, which excludes returns, cancellations, and first-party sales.
Executives
John E Koryl director, officer: Chief Executive Officer 55 FRANCISCO STREET 4TH FLOOR, SAN FRANCISCO CA 94133
Levesque Rati Sahi officer: Chief Operating Officer 55 FRANCISCO, SAN FRANCISCO CA 94133
Robert J Krolik director 873 SANTA CRUZ AVE, SUITE 206, MENLO PARK CA 94025
Luke Thomas Friang officer: Chief Product & Tech Officer 20614 NE 38TH STREET, SAMMAMISH WA 98074
Todd A Suko officer: Chief Legal Officer and Secy. 7251 WEST 4TH STREET, GREELEY CO 80634
Steve Ming Lo officer: VP, Corporate Controller 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Robert K. Julian officer: Chief Financial Officer C/O SPORTSMAN'S WAREHOUSE, 7035 SOUTH HIGH TECH DRIVE, MIDVALE UT 84047
James R. Miller director 4050 EAST COTTON CENTER BLVD. 6-68, PHOENIX AZ 85040
Julie Wainwright director, officer: CEO, President and Chairperson C/O THE REALREAL, INC., 55 FRANCISCO STREET, SUITE 600, SAN FRANCISCO CA 94133
Arnon Katz officer: Chief Product & Technology Off 3331 VERDUN AVE, SAN MATEO CA 94403
Matt Gustke officer: Chief Financial Officer 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Karen Katz director
Fredrik Bjork officer: Chief Technology Officer 55 FRANCISCO ST, 6TH FLOOR, SAN FRANCISCO CA 94133
Baird Gilbert L. Iii director 5075 S. SYRACUSE ST., DENVER CO 80237
Michael Andrew Kumin director C/O GREAT HILL PARTNERS, L.P., 200 CLARENDON STREET, 29TH FLOOR, BOSTON MA 02116