RH (RH)

Working capital 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
Total current assets US$ in thousands 1,101,900 2,512,660 3,091,440 801,484 596,952
Total current liabilities US$ in thousands 872,868 885,973 1,063,760 921,632 982,912
Working capital turnover 12.38 2.18 1.81

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,836,370K ÷ ($1,101,900K – $872,868K)
= 12.38

The working capital turnover ratio for RH has shown an improving trend over the past few years, increasing from 1.81 in January 2022 to 2.18 in January 2023 and further to 12.38 in February 2024.

A higher working capital turnover ratio indicates that the company is able to efficiently utilize its working capital to generate sales revenue. This improvement may be attributed to better inventory management, more efficient accounts receivable collection, or effective cash flow management.

However, it is important to note that the working capital turnover ratio for January 2021 and February 2020 is not available, making it difficult to assess the complete trend over the past five years. Nonetheless, the recent significant increase in the ratio suggests that RH has been more effective in optimizing its working capital to support its operations and drive higher revenue generation.


Peer comparison

Feb 3, 2024

Company name
Symbol
Working capital turnover
RH
RH
12.38
Haverty Furniture Companies Inc
HVT
7.66

See also:

RH Working Capital Turnover