RH (RH)
Payables turnover
| 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 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,793,293 | 2,777,619 | 2,789,114 | 2,897,060 | 3,011,926 | 3,029,596 | 3,046,394 | 3,021,690 | 2,935,801 | 2,877,776 | 2,878,336 | 2,716,735 | 2,495,319 | 2,442,551 | 2,296,082 | 2,324,189 | 1,868,272 | 1,876,846 | 1,892,822 | 1,853,029 |
| Payables | US$ in thousands | 192,345 | 179,539 | 150,339 | 156,531 | 166,082 | 180,484 | 186,319 | 254,537 | 242,035 | 205,595 | 238,607 | 231,901 | 224,906 | 187,381 | 182,944 | 151,890 | 180,714 | 138,034 | 145,583 | 176,069 |
| Payables turnover | 14.52 | 15.47 | 18.55 | 18.51 | 18.14 | 16.79 | 16.35 | 11.87 | 12.13 | 14.00 | 12.06 | 11.72 | 11.09 | 13.04 | 12.55 | 15.30 | 10.34 | 13.60 | 13.00 | 10.52 |
February 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,793,293K ÷ $192,345K
= 14.52
The payables turnover ratio for RH has shown fluctuations over the past few periods. The ratio measures how efficiently RH is managing its accounts payable by calculating the number of times a company pays off its average accounts payable balance during a specific period.
From Feb 3, 2024, to May 4, 2019, the payables turnover ratio ranged from a low of 10.34 to a high of 18.55, indicating variability in RH's ability to effectively manage its payables. The highest payables turnover of 18.55 was reported in the quarter ending Jul 29, 2023, whereas the lowest of 10.34 was recorded on Feb 1, 2020.
Overall, an increasing payables turnover ratio suggests that RH is taking less time to pay off its suppliers, which could indicate more efficient cash management. Conversely, a decreasing ratio may signify that RH is taking longer to settle its payables, potentially signaling liquidity or operational challenges. Monitoring trends in the payables turnover ratio can provide valuable insights into RH's financial health and efficiency in managing its payables.
Peer comparison
Feb 3, 2024