RH (RH)
Solvency ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.42 | 0.33 | 0.00 | 0.73 | 0.01 | 0.00 | 0.01 | 0.02 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | 0.02 | 0.02 | 0.01 | 0.67 | 0.59 | 0.00 | 0.80 | 0.03 | 0.00 | 0.03 | 0.13 | 0.00 | 0.00 | 0.62 | — | — | — |
| Debt-to-equity ratio | — | — | — | 0.02 | 0.02 | 0.01 | 2.00 | 1.45 | 0.00 | 3.92 | 0.03 | 0.00 | 0.03 | 0.14 | 0.00 | 0.00 | 1.66 | — | — | — |
| Financial leverage ratio | — | — | — | 6.34 | 6.77 | 4.55 | 4.78 | 4.39 | 4.73 | 5.38 | 4.30 | 5.45 | 6.48 | 9.03 | 19.51 | 127.01 | 131.13 | — | — | — |
The solvency ratios of RH indicate a strong financial position over the most recent periods. The debt-to-assets ratio has been consistently low, reflecting that the company has a minimal level of debt in relation to its total assets. The debt-to-capital and debt-to-equity ratios have also remained low, indicating that the company relies less on debt financing and has a strong capital and equity base to support its operations.
The financial leverage ratio, which measures the proportion of a company's total assets that are financed by debt, has shown fluctuation but has mostly been within reasonable levels. However, there were two instances where this ratio spiked significantly, indicating a higher level of financial risk associated with increased leverage during those periods.
Overall, RH appears to have maintained a prudent approach to managing its debt levels and capital structure, which is reflected in its strong solvency ratios in recent periods. It is important for the company to continue monitoring and managing its debt levels effectively to sustain its healthy financial position in the future.
Coverage ratios
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.66 | 2.37 | 3.55 | 4.47 | 4.86 | 6.15 | 8.47 | 10.48 | 13.66 | 15.80 | 12.66 | 9.80 | 6.44 | 4.87 | 4.15 | 3.53 | 4.09 | 3.62 | 3.30 | 3.38 |
The interest coverage ratio for RH has shown a fluctuating trend over the periods provided in the table. It measures the company's ability to meet its interest obligations from its operating income. The ratio has ranged from a low of 1.66 to a high of 15.80 during the period under review.
The interest coverage gradually increased from 1.66 in February 2024 to 15.80 in October 2021, indicating a significant improvement in the company's ability to cover its interest expenses. However, this ratio decreased to 3.30 in August 2019, experienced some fluctuations before peaking at 15.80 in October 2021, and then gradually decreased again.
Overall, the trend suggests that RH has generally demonstrated a strong ability to cover its interest costs over the period, with some fluctuations along the way. It is essential for stakeholders to monitor this ratio to assess the company's financial health and its ability to meet its debt obligations in the future.