RH (RH)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 123,688 | 1,508,100 | 2,177,890 | 100,446 | 47,658 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 78,845 | 79,954 | 66,315 | 73,043 | 48,979 |
| Total current liabilities | US$ in thousands | 872,868 | 885,973 | 1,063,760 | 921,632 | 982,912 |
| Quick ratio | 0.23 | 1.79 | 2.11 | 0.19 | 0.10 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($123,688K
+ $—K
+ $78,845K)
÷ $872,868K
= 0.23
The quick ratio measures a company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio below 1.0 indicates potential liquidity concerns, as the company may not have enough liquid assets to meet its short-term obligations.
Based on the data provided over the past five years, RH's quick ratio fluctuated significantly. In Jan 29, 2022, and Jan 28, 2023, RH had quick ratios of 2.11 and 1.79, respectively, indicating a strong ability to cover its short-term liabilities with liquid assets.
Conversely, in the other three years, the quick ratio was much lower, with the lowest ratio of 0.10 in Feb 1, 2020, and 0.19 in Jan 30, 2021, suggesting potential liquidity challenges during those periods.
Overall, fluctuations in RH's quick ratio over the years indicate varying levels of liquidity risk, with the company showing stronger liquidity positions in some years compared to others. Investors and analysts should closely monitor RH's liquidity position to assess its ability to meet short-term obligations effectively.
Peer comparison
Feb 3, 2024