RH (RH)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 44.48% | 45.04% | 44.80% | 44.83% | 46.13% | 46.25% | 47.92% | 48.35% | 48.54% | 48.64% | 45.14% | 46.00% | 47.17% | 49.14% | 52.68% | 52.72% | 52.60% | 51.23% | 51.15% | 50.85% |
| Operating profit margin | 10.42% | 10.67% | 9.66% | 8.37% | 8.03% | 10.62% | 13.47% | 15.13% | 16.72% | 15.56% | 13.31% | 15.07% | 17.67% | 20.13% | 22.66% | 23.53% | 23.82% | 24.44% | 26.11% | 26.33% |
| Pretax margin | 2.79% | 2.73% | 1.60% | 0.04% | -0.24% | 3.19% | 6.34% | 8.66% | 11.00% | 10.27% | 9.06% | 11.07% | 13.60% | 15.56% | 14.30% | 15.33% | 15.83% | 17.22% | 22.46% | 23.24% |
| Net profit margin | 2.28% | 2.29% | 1.62% | 0.59% | 0.64% | 2.79% | 4.94% | 6.43% | 7.90% | 8.99% | 9.37% | 10.82% | 12.19% | 12.04% | 14.58% | 15.61% | 16.79% | 18.16% | 17.63% | 19.31% |
RH's profitability ratios have shown fluctuations over the years. The gross profit margin, representing the percentage of revenue retained after accounting for the cost of goods sold, has varied between 44.48% and 52.72%. The operating profit margin, indicating how much of each dollar of revenue is left as profit after paying operating expenses, ranged from 8.03% to 26.33%. The pretax margin, reflecting the portion of revenue that represents pre-tax profit, showed changes from -0.24% to 23.24%. Lastly, the net profit margin, which reveals the percentage of revenue remaining as profit after all expenses have been deducted, fluctuated between 0.59% and 19.31%. These ratios provide insights into RH's efficiency in managing costs and generating profits over the analyzed periods.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 1.59% | 1.57% | 1.10% | 0.40% | 0.44% | 2.01% | 3.50% | 4.54% | 5.62% | 6.34% | 5.59% | 6.66% | 8.19% | 8.48% | 9.25% | 10.16% | 10.58% | 11.53% | 11.95% | 13.39% |
| Return on total capital | — | — | — | — | — | — | — | — | — | — | 56.20% | 60.84% | 81.18% | 88.03% | 49.25% | 56.39% | 18.58% | 54.40% | 78.69% | 81.85% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | 35.45% | 42.23% | 55.42% | 57.38% | 42.04% | 48.54% | 50.57% | 50.60% | 56.59% | 63.40% |
Based on the provided data, let's analyze the profitability ratios of RH:
1. Operating Return on Assets (Operating ROA): This ratio measures the efficiency of RH in generating operating profits from its assets. The trend shows a gradual decline 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.
2. Return on Assets (ROA): This ratio indicates how efficiently RH utilizes its assets to generate profits. The ROA also shows a decreasing trend, falling from 13.39% in January 2022 to 1.59% in January 2025. This suggests a decline in the company's overall profitability relative to its total assets.
3. Return on Total Capital: This ratio shows the profitability of RH relative to both debt and equity. The data provided indicates high returns in the earlier periods, but the information is missing for the later periods. However, the trend suggests fluctuations in profitability relative to the total capital employed by the company.
4. Return on Equity (ROE): ROE reflects the profitability of RH from the perspective of its equity shareholders. The ROE shows a decreasing trend, with percentages falling from 63.40% in January 2022 to not available data for January 2025. This indicates a diminishing return for equity investors over time.
In summary, the profitability ratios of RH have shown a declining trend over the years, reflecting potential challenges in generating profits and maximizing returns for both assets and equity. It will be important for RH to address these declining trends and take necessary steps to improve its profitability performance in the future.