RH (RH)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.26 | 1.38 | 1.55 | 2.91 | 2.84 | 3.49 | 3.39 | 2.50 | 2.91 | 2.75 | 0.93 | 0.97 | 0.87 | 0.83 | 0.79 | 0.65 | 0.61 | 0.62 | 0.71 | 0.81 |
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 several reporting periods, ranging from a low of 0.61 to a high of 3.49. The current ratio measures the company's ability to cover its short-term obligations with its current assets.
RH's current ratio was below 1 in two consecutive periods, indicating potential liquidity issues and a risk of not being able to meet its short-term liabilities with its current assets alone. However, it then increased significantly to above 2 in the subsequent periods, suggesting an improved ability to cover its short-term obligations.
Overall, the current ratio has shown inconsistency, with periods of both strength and weakness. It is important for RH to maintain a healthy current ratio to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Feb 3, 2024