RH (RH)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,143,900 | 5,309,290 | 5,540,470 | 2,898,310 | 2,445,690 |
| Total stockholders’ equity | US$ in thousands | -297,394 | 784,661 | 1,170,280 | 447,026 | 18,651 |
| Financial leverage ratio | — | 6.77 | 4.73 | 6.48 | 131.13 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,143,900K ÷ $-297,394K
= —
The financial leverage ratio for RH has fluctuated over the past five years. It was not available for Feb 3, 2024. In Jan 28, 2023, and Jan 30, 2021, RH had relatively high levels of financial leverage, with ratios of 6.77 and 6.48, respectively. This indicates that the company relied more on debt to finance its operations during those periods.
In contrast, the financial leverage ratio was lower in Jan 29, 2022, at 4.73, suggesting a decrease in the proportion of debt in the company's capital structure. The ratio spiked significantly in Feb 1, 2020, reaching an unusually high level of 131.13, implying a very high level of debt relative to equity.
The fluctuation in RH's financial leverage ratio over the years may reflect changes in the company's capital structure and its strategic decisions regarding leverage and financing. It is important for stakeholders to monitor these changes closely to assess the company's risk profile and financial health.