RH (RH)
Current ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.26 | 2.84 | 2.91 | 0.87 | 0.61 |
February 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,101,900K ÷ $872,868K
= 1.26
The current ratio of RH has fluctuated over the past five years. It stood at 1.26 as of February 3, 2024, indicating that the company has $1.26 in current assets for every $1 in current liabilities. This represents a decrease from the previous year where the current ratio was considerably higher at 2.84 on January 28, 2023.
Comparing to two years earlier, the current ratio was 2.91 on January 29, 2022, reflecting a relatively strong liquidity position. However, on January 30, 2021, the current ratio dropped significantly to 0.87, raising concerns about the company's ability to meet its short-term obligations.
The current ratio was even lower at 0.61 on February 1, 2020, indicating a notable liquidity challenge at that time. Overall, RH's current ratio has experienced fluctuations, suggesting varying levels of liquidity and ability to cover short-term obligations over the years. Further analysis of the company's current assets and liabilities is recommended to understand the underlying factors driving these fluctuations.
Peer comparison
Feb 3, 2024