RH (RH)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | 78,845 | — | — | 88,450 | — | 74,833 | — | 80,706 | — | 79,954 | 176,336 | — | 209,763 | — | — | 66,315 |
| 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 |
| Quick ratio | 0.03 | 0.10 | 0.08 | 0.11 | 0.23 | 0.14 | 0.41 | 0.50 | 0.48 | 0.56 | 1.79 | 1.88 | 1.70 | 1.79 | 2.49 | 2.18 | 2.39 | 1.65 | 2.05 | 2.11 |
January 31, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($30,413K
+ $—K
+ $—K)
÷ $905,126K
= 0.03
The quick ratio of RH has shown variability over the past few years. It ranged from a high of 2.49 on October 29, 2022, to a low of 0.03 on January 31, 2025. Generally, a quick ratio above 1 indicates that a company can cover its short-term liabilities with its most liquid assets, such as cash and accounts receivable, which is considered a positive sign of financial health. However, the quick ratio of RH dropped significantly below 1 in recent periods, reaching its lowest point at 0.03 on January 31, 2025, indicating potential liquidity concerns. This downward trend in the quick ratio may raise questions about RH's ability to meet its short-term obligations using its readily available assets. Further analysis and monitoring of RH's liquidity position would be advisable to assess the company's financial stability and ability to manage short-term debts effectively.