RH (RH)

Debt-to-capital ratio

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Long-term debt US$ in thousands 17,766 17,909 1,129 14,614 31,053
Total stockholders’ equity US$ in thousands -297,394 784,661 1,170,280 447,026 18,651
Debt-to-capital ratio 0.02 0.00 0.03 0.62

February 3, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $17,766K ÷ ($17,766K + $-297,394K)
= —

The debt-to-capital ratio of RH shows a significant variation over the past five years. In January 2020, the company had a notably higher debt-to-capital ratio of 0.62, indicating that a large portion of its capital structure was funded by debt at that time. However, this ratio decreased substantially in the subsequent years.

By January 2022, RH had effectively brought down its debt-to-capital ratio to 0.00, signaling a capital structure almost entirely supported by equity rather than debt. This could suggest a shift in the company's financing strategy towards reducing debt levels and improving financial stability.

In the most recent data available as of February 2023, the debt-to-capital ratio remained relatively low at 0.02. This indicates that RH continues to maintain a conservative approach to debt financing compared to the high levels seen in the past.

Overall, the trend in RH's debt-to-capital ratio suggests a positive direction in terms of managing debt levels and achieving a more balanced capital structure over the years.


Peer comparison

Feb 3, 2024

Company name
Symbol
Debt-to-capital ratio
RH
RH
Haverty Furniture Companies Inc
HVT
0.00

See also:

RH Debt to Capital