RH (RH)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 331,383 | 325,309 | 287,418 | 242,527 | 230,304 | 317,389 | 405,152 | 453,156 | 501,160 | 462,025 | 422,890 | 493,900 | 630,220 | 752,429 | 845,512 | 893,028 | 875,234 | 913,359 | 980,610 | 1,011,832 |
| Total assets | US$ in thousands | 4,554,690 | 4,464,220 | 4,376,400 | 4,186,540 | 4,143,900 | 4,143,900 | 4,240,620 | 4,240,620 | 4,212,830 | 4,212,830 | 5,319,830 | 5,319,830 | 5,309,290 | 5,309,290 | 5,883,720 | 5,831,450 | 5,831,450 | 5,887,940 | 5,540,470 | 5,540,470 |
| Operating ROA | 7.28% | 7.29% | 6.57% | 5.79% | 5.56% | 7.66% | 9.55% | 10.69% | 11.90% | 10.97% | 7.95% | 9.28% | 11.87% | 14.17% | 14.37% | 15.31% | 15.01% | 15.51% | 17.70% | 18.26% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $331,383K ÷ $4,554,690K
= 7.28%
The operating return on assets (Operating ROA) for RH has shown a decreasing trend over the period analyzed, declining from 18.26% in January 2022 to 7.28% in January 2025. This indicates that the company's ability to generate operating profits from its assets has weakened over time.
The highest operating ROA was observed in January 2022 at 18.26%, suggesting a strong performance in utilizing its assets to generate operating income. However, this performance gradually deteriorated, reaching a low of 5.56% in February 2024 before recovering slightly to 7.28% in January 2025.
The decline in operating ROA could be attributed to various factors such as increasing operating expenses, inefficiencies in asset utilization, or a decrease in operating income relative to total assets. It is essential for RH to closely monitor and address the factors contributing to this decline to improve its operational efficiency and financial performance in the future.