RH (RH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 123,688 | 380,695 | 417,047 | 1,516,690 | 1,508,100 | 2,150,470 | 2,085,080 | 2,243,260 | 2,177,890 | 2,198,960 | 291,461 | 229,527 | 100,446 | 89,884 | 17,387 | 17,208 | 47,658 | 38,253 | 11,555 | 37,550 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.14 | 0.41 | 0.48 | 1.78 | 1.70 | 2.30 | 2.17 | 1.65 | 2.05 | 2.01 | 0.24 | 0.23 | 0.11 | 0.10 | 0.02 | 0.02 | 0.05 | 0.04 | 0.01 | 0.04 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($123,688K
+ $—K)
÷ $872,868K
= 0.14
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. Looking at the historical data for RH's cash ratio, we can see some fluctuations over time. The cash ratio has varied between 0.01 and 2.30, indicating changes in RH's liquidity position.
The cash ratio was relatively low in the earlier periods, hovering around 0.01 to 0.48. This suggests that RH had limited cash on hand compared to its short-term liabilities during those periods. However, starting from April 29, 2023, the cash ratio increased significantly, reaching its peak at 2.30 on October 29, 2022. This implies that RH significantly improved its liquidity position and had more than enough cash to cover its short-term obligations during this period.
Subsequently, the cash ratio fluctuated between 1.65 and 2.30 until January 29, 2022, indicating that RH maintained a strong liquidity position during these quarters. However, the cash ratio decreased in the following periods, dropping to as low as 0.02 on May 2, 2020.
Overall, the trend in RH's cash ratio shows periods of both strong and weaker liquidity positions. Analyzing the cash ratio over time provides insights into RH's ability to meet its short-term liabilities using its available cash reserves.