RH (RH)
Days of sales outstanding (DSO)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | — | — | — | — | 36.37 | — | — | 33.86 | — | 39.69 | — | 40.60 | — | 46.75 | 21.16 | — | 17.52 | — | — | 57.94 | |
| DSO | days | — | — | — | — | 10.04 | — | — | 10.78 | — | 9.20 | — | 8.99 | — | 7.81 | 17.25 | — | 20.84 | — | — | 6.30 |
January 31, 2025 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —
Days Sales Outstanding (DSO) is a key financial ratio that measures how long it takes for a company to collect its accounts receivable. A lower DSO indicates faster collection of receivables and better liquidity management, while a higher DSO may suggest potential issues with credit policies or collections.
Based on the data provided for RH, the DSO fluctuated over the period from January 29, 2022, to January 31, 2025. The DSO was significantly low at 6.30 days on January 29, 2022. Subsequently, there were periods where the DSO data was not available, indicated by "— days".
The DSO increased to 20.84 days on July 30, 2022, reflecting a longer time taken to collect receivables. This might indicate potential challenges in collecting payments from customers during this period. However, the DSO improved to 17.25 days by October 29, 2022, suggesting a more efficient collections process.
The DSO continued to vary over the following quarters, showing values of 7.81 days on January 28, 2023, 8.99 days on April 29, 2023, and 9.20 days on July 29, 2023. These fluctuations could be influenced by seasonality, changes in customer payment behavior, or adjustments in credit terms.
Towards the end of the provided data, the DSO was relatively stable around the range of 10-11 days, with values of 10.78 days on October 28, 2023, 10.04 days on February 3, 2024, and 10.04 days again on October 31, 2024.
The increasing DSO values may warrant further investigation into RH's accounts receivable management practices, customer creditworthiness, and collection strategies to ensure efficient cash flow and working capital management. Periods of significant changes in DSO should be analyzed to identify underlying factors impacting the company's liquidity position.