RH (RH)
Receivables turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,836,370 | 3,539,340 | 3,668,920 | 2,777,900 | 2,564,930 |
| Receivables | US$ in thousands | 78,845 | 79,954 | 66,315 | 73,043 | 48,979 |
| Receivables turnover | 35.97 | 44.27 | 55.33 | 38.03 | 52.37 |
February 3, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,836,370K ÷ $78,845K
= 35.97
The receivables turnover ratio for RH has fluctuated over the past five years. In FY2024, the company's receivables turnover was 35.97, a decrease from the prior year but still indicating that RH collected its accounts receivable approximately 36 times during that fiscal year. This decline may suggest a lengthening of the average collection period for receivables compared to the previous year.
Compared to two years ago in FY2022, the receivables turnover ratio was significantly higher at 55.33, indicating a more efficient collection of accounts receivable during that period. However, in FY2021 and FY2020, the turnover ratios were 38.03 and 52.37, respectively, showing variations in the company's ability to convert receivables into cash during those years.
Overall, the trend in RH's receivables turnover highlights fluctuations in the efficiency of the company's collection process over the past five years, with potential implications for cash flow management and working capital efficiency. Additional analysis and comparison with industry benchmarks may provide further insights into the effectiveness of RH's accounts receivable management.
Peer comparison
Feb 3, 2024