Stock Analysis on Net
Stock Analysis on Net

RH (NYSE:RH)

This company has been moved to the archive! The financial data has not been updated since May 26, 2023.

Common-Size Balance Sheet: Assets

RH, common-size consolidated balance sheet: assets

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Cash and cash equivalents 28.40 39.31 3.47 1.95 0.32 1.03
Restricted cash 0.07 0.00 0.00 0.00 0.00 0.00
Accounts receivable, net 1.13 1.05 2.05 2.00 2.23 1.81
Merchandise inventories 15.10 13.25 18.78 17.94 29.45 30.41
Capitalized catalog costs 0.50 0.40 0.66 0.56 0.90 2.55
Prepaid expenses 0.46 0.57 0.00 0.00 0.00 0.00
Vendor deposits 0.40 0.35 0.43 0.46 0.66 0.56
Federal and state tax receivable 0.23 0.00 0.00 0.00 0.00 0.00
Tenant allowance receivable 0.16 0.28 0.22 0.00 0.00 0.00
Value added tax (VAT) receivable 0.14 0.08 0.00 0.00 0.00 0.00
Right of return asset for merchandise 0.09 0.12 0.26 0.23 0.33 0.00
Interest income receivable 0.09 0.00 0.00 0.00 0.00 0.00
Promissory notes receivable, including interest 0.06 0.15 0.47 0.00 0.00 0.00
Insurance recovery receivable 0.00 0.00 0.00 0.00 2.77 0.00
Other current assets 0.49 0.24 1.32 1.26 1.15 0.85
Prepaid expense and other current assets 2.62% 2.19% 3.36% 2.52% 5.80% 3.96%
Current assets 47.33% 55.80% 27.65% 24.41% 37.80% 37.22%
Property and equipment, net 30.81 22.16 37.17 39.56 47.82 46.21
Operating lease right-of-use assets 9.93 9.95 15.74 16.80 0.00 0.00
Goodwill 2.66 2.55 4.87 5.09 6.89 8.19
Tradenames, trademarks and other intangible assets 1.41 1.32 2.47 3.52 4.76 5.81
Deferred tax assets 3.15 1.03 1.72 1.84 1.66 1.35
Equity method investments 1.91 1.82 3.47 0.00 0.00 0.00
Initial direct costs prior to lease commencement 0.97 1.03 1.27 0.64 0.00 0.00
Landlord assets under construction, net of tenant allowances 0.86 3.68 4.68 5.02 0.00 0.00
Capitalized cloud computing costs, net 0.41 0.27 0.25 0.00 0.00 0.00
Vendor deposits, non-current 0.20 0.01 0.00 0.00 0.00 0.00
Other deposits 0.13 0.12 0.18 0.21 0.28 0.29
Deferred financing fees 0.07 0.07 0.05 0.11 0.19 0.26
Deposits on asset under construction 0.00 0.00 0.00 2.45 0.00 0.43
Promissory note receivable, including interest 0.00 0.00 0.00 0.22 0.28 0.00
Other non-current assets 0.18 0.19 0.48 0.14 0.32 0.26
Other non-current assets 2.81% 5.38% 6.91% 8.78% 1.07% 1.23%
Non-current assets 52.67% 44.20% 72.35% 75.59% 62.20% 62.78%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

The asset composition of the balance sheet reflects a significant strategic shift toward liquidity and a reduction in the relative weight of long-term physical and intangible assets over the analyzed six-year period. A transition is observed from a capital-intensive structure dominated by property, equipment, and inventory toward a more liquid position characterized by a substantial increase in cash holdings.

Liquidity and Current Asset Trends
Cash and cash equivalents experienced a dramatic increase, rising from a low of 0.32% in February 2019 to a peak of 39.31% in January 2022, before settling at 28.40% in January 2023. This surge drove a corresponding increase in total current assets, which reached a high of 55.80% in January 2022, compared to a range of 24.41% to 37.80% between 2018 and 2021.
Inventory Management
Merchandise inventories as a percentage of total assets showed a consistent downward trend for much of the period, decreasing from 30.41% in February 2018 to 13.25% in January 2022. While there was a slight increase to 15.10% by January 2023, the overall trajectory indicates a reduction in the relative amount of capital tied up in inventory.
Fixed and Non-Current Asset Devaluation
Property and equipment, net, saw a steady decline from 46.21% in February 2018 to 30.81% in January 2023. Similarly, intangible assets and goodwill experienced significant contractions; goodwill decreased from 8.19% to 2.66%, and tradenames and other intangible assets fell from 5.81% to 1.41% over the same timeframe. This suggests an asset-light transition or the effect of depreciation and amortization in the absence of proportional new capital expenditures.
Lease and Other Non-Current Assets
Operating lease right-of-use assets first appeared as a significant component in February 2020 at 16.80% and gradually declined to 9.93% by January 2023. Landlord assets under construction also showed a notable decrease, dropping from a peak of 5.02% in February 2020 to 0.86% in January 2023, indicating a completion or reduction of major construction projects.

Overall, the balance sheet has evolved from one where non-current assets represented the vast majority of the total (peaking at 75.59% in February 2020) to a more balanced distribution, with non-current assets ending at 52.67% in January 2023. The most prominent feature of this evolution is the aggressive accumulation of cash reserves relative to the total asset base.

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