RH (RH)
Cash ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 30,413 | 87,012 | 78,333 | 101,787 | 123,688 | 123,688 | 382,655 | 380,695 | 420,585 | 417,047 | 1,520,230 | 1,516,690 | 1,508,100 | 1,508,100 | 2,150,470 | 2,085,710 | 2,085,080 | 2,243,260 | 2,177,890 | 2,177,890 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 905,126 | 896,267 | 1,010,550 | 936,491 | 872,868 | 872,868 | 934,974 | 934,974 | 872,666 | 872,666 | 851,503 | 851,503 | 885,973 | 885,973 | 935,176 | 958,903 | 958,903 | 1,361,530 | 1,063,760 | 1,063,760 |
| Cash ratio | 0.03 | 0.10 | 0.08 | 0.11 | 0.14 | 0.14 | 0.41 | 0.41 | 0.48 | 0.48 | 1.79 | 1.78 | 1.70 | 1.70 | 2.30 | 2.18 | 2.17 | 1.65 | 2.05 | 2.05 |
January 31, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($30,413K
+ $—K)
÷ $905,126K
= 0.03
The cash ratio of RH has shown fluctuations over the years as per the provided data. The cash ratio is a liquidity ratio that indicates a company's ability to cover its short-term liabilities with its cash and cash equivalents.
From January 29, 2022, to October 29, 2022, the cash ratio was relatively stable, ranging from 2.05 to 2.30, indicating RH had a strong ability to cover its short-term liabilities with its cash reserves during this period.
However, there was a noticeable decline in the cash ratio from January 28, 2023, to July 31, 2023, with the ratio dropping to as low as 0.41. This suggests a potential decrease in RH's ability to cover its short-term obligations with its available cash during this period.
The cash ratio further decreased significantly from January 31, 2024, to January 31, 2025, reaching as low as 0.03. This sharp decline may indicate potential liquidity challenges for RH in meeting its short-term obligations with its cash and cash equivalents.
Overall, the trend in the cash ratio for RH shows fluctuation over time, with periods of strong liquidity coverage followed by declines. It is important for RH to closely monitor its cash position and manage its liquidity effectively to ensure it can meet its short-term financial obligations.