RH (RH)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 323,093 | 393,721 | 404,596 | 591,069 | 550,494 |
| Long-term debt | US$ in thousands | — | 17,766 | — | — | 17,909 |
| Total stockholders’ equity | US$ in thousands | -163,589 | -297,394 | -297,394 | 784,661 | 784,661 |
| Return on total capital | — | — | — | 75.33% | 68.59% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $323,093K ÷ ($—K + $-163,589K)
= —
The return on total capital for RH has fluctuated over the years, with a strong performance in the past. In January 2023, the return on total capital was 68.59%, showing a solid profitability relative to the total capital employed. By January 31, 2023, the return improved further to 75.33%, indicating an even higher efficiency in generating returns from the total capital invested.
However, there is missing data for the return on total capital for the subsequent years, with data unavailable for January 31, 2024, February 3, 2024, and January 31, 2025. This lack of information makes it challenging to assess the trend in the return on total capital beyond January 31, 2023.
Overall, based on the available data, RH has demonstrated a strong ability to generate returns on the total capital employed in the business, reflecting efficient capital utilization and potential profitability. Further analysis would be required to understand the overall trend in the return on total capital for a more comprehensive evaluation of RH's financial performance.