RH (RH)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,836,374 | 3,120,032 | 3,261,556 | 3,447,058 | 3,540,792 | 3,448,343 | 3,584,715 | 3,614,984 | 3,668,919 | 3,610,126 | 3,464,121 | 3,200,155 | 2,834,489 | 2,687,029 | 2,534,679 | 2,531,911 | 2,755,530 | 2,761,445 | 2,720,477 | 2,654,761 |
| Total current assets | US$ in thousands | 1,101,900 | 1,286,880 | 1,356,530 | 2,475,840 | 2,512,660 | 3,266,460 | 3,251,320 | 3,399,060 | 3,091,440 | 3,013,840 | 1,137,820 | 989,408 | 801,484 | 734,900 | 621,439 | 625,721 | 596,952 | 559,479 | 657,622 | 822,065 |
| Total current liabilities | US$ in thousands | 872,868 | 934,974 | 872,666 | 851,503 | 885,973 | 935,176 | 958,903 | 1,361,530 | 1,063,760 | 1,096,310 | 1,229,000 | 1,016,170 | 921,632 | 882,585 | 784,980 | 968,935 | 982,912 | 903,706 | 924,957 | 1,011,610 |
| Working capital turnover | 12.38 | 8.87 | 6.74 | 2.12 | 2.18 | 1.48 | 1.56 | 1.77 | 1.81 | 1.88 | — | — | — | — | — | — | — | — | — | — |
February 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,836,374K ÷ ($1,101,900K – $872,868K)
= 12.38
The working capital turnover for RH has shown a fluctuating trend over the past several periods. The ratio indicates the efficiency with which the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio is generally preferred as it implies that the company is able to generate more sales revenue per unit of working capital invested.
The working capital turnover ratio for RH has ranged from 1.48 to 12.38 across the provided periods. The highest ratio of 12.38 on Feb 3, 2024, suggests that RH was able to generate $12.38 in sales revenue for every $1 of working capital during that period. This indicates strong efficiency in utilizing its working capital resources.
However, there are periods, such as Apr 29, 2023, and Jul 29, 2023, where the working capital turnover ratio dropped significantly, indicating a lower efficiency in using working capital to generate sales revenue.
Overall, analyzing the working capital turnover trend for RH can provide insights into the company's management of its working capital and its ability to generate sales efficiently.
Peer comparison
Feb 3, 2024