RH (RH)
Payables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,797,980 | 3,004,580 | 2,937,740 | 2,495,320 | 2,401,590 |
| Payables | US$ in thousands | 192,345 | 166,082 | 242,035 | 224,906 | 180,714 |
| Payables turnover | 14.55 | 18.09 | 12.14 | 11.09 | 13.29 |
February 3, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,797,980K ÷ $192,345K
= 14.55
The payables turnover ratio measures how efficiently a company is managing its accounts payable by comparing the amount of purchases made on credit to the average accounts payable balance. A higher payables turnover ratio indicates that the company is paying off its debts more quickly.
Based on the data provided:
- The payables turnover ratio for RH has varied over the past five years, ranging from 11.09 to 18.09.
- In the most recent fiscal year, ending on Feb 3, 2024, the payables turnover ratio was 14.55, indicating that RH was able to manage its accounts payable effectively.
- A higher payables turnover ratio in Jan 28, 2023, with a value of 18.09, suggests that RH was able to pay off its obligations at a faster rate during that period.
- The lowest payables turnover ratio was observed on Jan 30, 2021, at 11.09, indicating a slower rate of accounts payable turnover compared to other years.
- Overall, RH has shown fluctuations in its payables turnover ratio, but it has generally maintained a relatively efficient management of its accounts payable over the years.
Peer comparison
Feb 3, 2024