RH (RH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.42 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.02 | 0.00 | 0.02 | 0.01 | 0.00 | 0.67 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | 0.00 | 0.02 | 0.00 | 0.02 | 0.01 | 0.00 | 2.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | 6.34 | 6.34 | 6.77 | 6.77 | 4.55 | 4.78 | 4.78 | 4.39 | 4.73 | 4.73 |
Based on the provided data, RH has maintained a consistently low debt-to-assets ratio, with readings of 0.00 for most of the recorded periods. However, there was a notable increase in the ratio in July 30, 2022, which reached 0.42.
In terms of the debt-to-capital ratio, RH also generally exhibited a low level of indebtedness, with readings mostly at 0.00. There was a spike in the ratio in July 30, 2022, to 0.67, indicating a temporary increase in reliance on debt for capital.
The debt-to-equity ratio for RH followed a pattern similar to the other solvency ratios, remaining low at 0.00 for most periods. The ratio jumped to 2.00 in July 30, 2022, but subsequently decreased to lower levels.
The financial leverage ratio for RH shows that the company has been maintaining a moderate level of financial leverage, as indicated by the ratios ranging from 4.39 to 6.77. The increase in the ratio from 4.39 in April 30, 2022, to 6.77 in January 28, 2023, suggests a significant shift in the capital structure during that period.
Overall, the solvency ratios suggest that RH has been managing its debt levels relatively well, with a predominantly low debt burden in relation to its assets, capital, and equity. However, the temporary spikes in certain periods indicate potential fluctuations in the company's leverage and capital structure that warrant further monitoring.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 1.41 | 1.33 | 1.18 | 1.04 | 0.99 | 1.52 | 2.07 | 2.59 | 3.14 | 2.82 | 2.82 | 3.28 | 4.38 | 5.96 | 6.17 | 7.01 | 7.03 | 8.72 | 12.10 | 14.78 |
The interest coverage ratio for RH has been gradually declining over the past few years based on the provided data. As of January 29, 2022, the interest coverage ratio was 14.78, indicating that RH could cover its interest expenses almost 15 times. However, this ratio decreased to 1.41 as of January 31, 2025, suggesting that the company's ability to cover its interest payments with operating income has significantly diminished.
A declining interest coverage ratio could raise concerns about RH's financial health and its ability to meet its debt obligations. A lower ratio indicates that the company may be struggling to generate enough operating income to cover its interest expenses, potentially leading to liquidity issues or even default on its debt.
It is essential for RH to closely monitor its interest coverage ratio and take steps to improve it, such as increasing profitability, reducing debt levels, or refinancing debt at lower interest rates. By enhancing its interest coverage ratio, RH can enhance its financial stability and reduce the risk of financial distress.