RH (RH)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.94 | 3.86 | 3.78 | 3.78 | 3.95 | 3.70 | 3.55 | 3.70 | 4.13 | 4.54 | 4.46 | — | 4.79 | 4.91 | — | — | 4.26 | — | — | — |
| Receivables turnover | 35.97 | 35.27 | 43.58 | 42.71 | 44.29 | 19.56 | 17.09 | 16.87 | 55.33 | 47.04 | 38.60 | — | 38.81 | 32.94 | — | — | 56.26 | — | — | — |
| 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 |
| Working capital turnover | 12.38 | 8.87 | 6.74 | 2.12 | 2.18 | 1.48 | 1.56 | 1.77 | 1.81 | 1.88 | — | — | — | — | — | — | — | — | — | — |
The inventory turnover ratio for RH has been relatively stable over the periods analyzed, averaging around 3.9 times per year. This indicates that, on average, RH sells and replaces its inventory approximately 3.9 times within a year.
The receivables turnover ratio has shown fluctuations but generally signifies that RH collects its receivables quite efficiently. With an average turnover of approximately 35 times per year, it indicates that RH converts its accounts receivable into cash roughly 35 times in a year.
The payables turnover ratio for RH has also varied but has generally ranged between 10 and 20 times per year. This suggests that RH is able to pay its suppliers relatively quickly on average, with figures hovering around 14 times per year.
The working capital turnover ratio for RH has shown significant fluctuations but generally reveals that RH is able to generate sales in relation to its working capital. The ratios range from 1.48 to 12.38 times, indicating how efficiently RH is utilizing its working capital to generate revenue.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 92.53 | 94.48 | 96.53 | 96.55 | 92.32 | 98.71 | 102.93 | 98.73 | 88.31 | 80.36 | 81.92 | — | 76.12 | 74.28 | — | — | 85.71 | — | — | — |
| Days of sales outstanding (DSO) | days | 10.15 | 10.35 | 8.37 | 8.55 | 8.24 | 18.66 | 21.36 | 21.64 | 6.60 | 7.76 | 9.46 | — | 9.41 | 11.08 | — | — | 6.49 | — | — | — |
| Number of days of payables | days | 25.13 | 23.59 | 19.67 | 19.72 | 20.13 | 21.74 | 22.32 | 30.75 | 30.09 | 26.08 | 30.26 | 31.16 | 32.90 | 28.00 | 29.08 | 23.85 | 35.31 | 26.84 | 28.07 | 34.68 |
Days of inventory on hand (DOH) measures how many days it takes for RH to sell its current inventory. A decreasing trend in DOH indicates the company is selling inventory faster, which may lead to lower carrying costs and potential stockouts. However, a very low DOH could signal potential stock shortages.
Days of sales outstanding (DSO) evaluates how long it takes for RH to collect its accounts receivable. A decreasing trend in DSO implies faster collection of receivables, improving cash flows and reducing the risk of bad debts. Conversely, an increasing DSO could indicate issues with credit policies or customer payment delays.
Number of days of payables measures how long RH takes to pay its suppliers. An increasing trend in this ratio may suggest that the company is taking longer to settle its payables, which could strain relationships with suppliers or indicate potential liquidity issues. Conversely, a decreasing trend in days of payables could indicate better negotiation power with suppliers or improved cash management.
By analyzing these activity ratios over time, analysts can gain valuable insights into RH's inventory management, receivables collection efficiency, and payment practices, helping to assess the company's operational effectiveness and financial health.
See also:
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.68 | 1.87 | 1.97 | 2.10 | 2.16 | 2.19 | 2.31 | 2.66 | 2.99 | 3.02 | 3.06 | 2.90 | 2.63 | 2.55 | 2.41 | 2.65 | 2.85 | 2.85 | 2.86 | 2.78 |
| Total asset turnover | 0.68 | 0.74 | 0.77 | 0.65 | 0.67 | 0.59 | 0.61 | 0.61 | 0.66 | 0.67 | 1.00 | 0.99 | 0.98 | 1.00 | 1.01 | 1.04 | 1.13 | 1.17 | 1.14 | 1.04 |
The fixed asset turnover ratio for RH has shown a gradual decrease over the recent periods, indicating that the company is generating less revenue in relation to its fixed assets. This could be attributed to factors such as underutilization of fixed assets or a decrease in sales compared to the value of fixed assets.
On the other hand, the total asset turnover ratio has fluctuated significantly over the same period, indicating varying levels of efficiency in generating sales from all assets. The lowest ratios suggest that the company may be less effective in utilizing its total assets to generate revenue. However, the ratios above 1 in some periods demonstrate that the company is effectively generating more revenue compared to the total value of assets, implying a higher level of efficiency.
Overall, the analysis of the long-term activity ratios for RH suggests a need for the company to closely monitor its asset utilization efficiency and consider strategies to improve revenue generation relative to both fixed and total assets. It may be beneficial for the company to evaluate its asset management practices and operational efficiency to enhance overall performance in the long term.