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.


Peer comparison

Feb 3, 2024

Company name
Symbol
Cash ratio
RH
RH
0.14
Haverty Furniture Companies Inc
HVT
0.87

See also:

RH Cash Ratio (Quarterly Data)