RH (RH)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 78,845 | 88,450 | 74,833 | 80,706 | 79,954 | 176,336 | 209,763 | 214,283 | 66,315 | 76,740 | 89,744 | — | 73,043 | 81,564 | — | — | 48,979 | — | — | — |
| 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 |
| Quick ratio | 0.23 | 0.50 | 0.56 | 1.88 | 1.79 | 2.49 | 2.39 | 1.80 | 2.11 | 2.08 | 0.31 | 0.23 | 0.19 | 0.19 | 0.02 | 0.02 | 0.10 | 0.04 | 0.01 | 0.04 |
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 of RH has demonstrated significant fluctuations over the past several quarters, indicating varying levels of liquidity and ability to meet short-term obligations with its most liquid assets.
On Feb 3, 2024, the quick ratio was 0.23, showing a decline compared to the previous quarter where it was 0.50 on Oct 28, 2023. This sharp decrease may raise concerns about the company's short-term liquidity position.
The quick ratio improved notably in the quarter ending Jul 29, 2023, at 0.56, and further increased significantly to 1.88 on Apr 29, 2023. This indicated a strengthening liquidity position and heightened ability to cover short-term obligations with liquid assets.
The trend continued positively into the quarter ending Jan 28, 2023, where the quick ratio was 1.79, and notably peaked at 2.49 on Oct 29, 2022. These high ratios suggest a robust liquidity position during these periods.
However, the quick ratio saw a decrease to 2.39 on Jul 30, 2022, and then declined further to 1.80 on Apr 30, 2022. Despite these declines, the quick ratio remained above 1, indicating the company's ability to cover short-term liabilities with its liquid assets.
The trend reversed in the following quarters, with quick ratios of 2.11 on Jan 29, 2022, and 2.08 on Oct 30, 2021, showing improved liquidity once again.
The quick ratio fell sharply to 0.31 on Jul 31, 2021, followed by 0.23 on May 1, 2021, signaling potential liquidity challenges during these periods.
Subsequent quarters exhibited low quick ratios, with values of 0.19 on Jan 30, 2021, and Oct 31, 2020, as well as 0.02 on Aug 1, 2020, and May 2, 2020, suggesting a limited ability to cover short-term obligations with current liquid assets.
The quick ratio fluctuated around minimal levels in previous periods, such as 0.10 on Feb 1, 2020, 0.04 on Nov 2, 2019, and 0.01 on Aug 3, 2019, before slightly increasing to 0.04 on May 4, 2019.
In conclusion, the quick ratio of RH has shown varying levels of liquidity over the analyzed periods, with peaks indicating strong liquidity positions and declines raising potential concerns about the company's ability to meet short-term obligations with its liquid assets.
Peer comparison
Feb 3, 2024