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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: Liabilities and Stockholders’ Equity

RH, common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Accounts payable 3.13 4.37 7.76 7.39 10.13 11.27
Accrued compensation 1.44 1.75 2.93 2.64 3.55 2.74
Accrued occupancy 0.54 0.51 0.61 0.49 0.60 0.50
Accrued sales taxes 0.36 0.45 0.82 0.80 1.02 1.13
Accrued freight and duty 0.33 0.40 1.03 1.03 1.15 1.37
Accrued interest 0.27 0.09 0.00 0.00 0.00 0.00
Accrued legal reserves 0.17 0.03 0.00 0.00 0.00 0.00
Accrued professional fees 0.14 0.11 0.19 0.18 0.11 0.21
Accrued catalog costs 0.09 0.07 0.15 0.34 0.57 0.52
Other accrued expenses 0.59 0.22 0.67 0.63 0.61 0.66
Deferred consideration for asset purchase 0.00 0.00 0.50 0.00 0.00 0.00
Accounts payable and accrued expenses 7.06% 7.98% 14.64% 13.51% 17.74% 18.40%
Deferred revenue and customer deposits 6.14 7.00 9.68 6.64 8.45 8.62
Convertible senior notes due 2024, net 0.00 0.06 0.00 0.00 0.00 0.00
Convertible senior notes due 2023, net 0.03 0.17 0.08 0.00 0.00 0.00
Convertible senior notes due 2020, net 0.00 0.00 0.00 11.88 0.00 0.00
Convertible senior notes due 2019, net 0.00 0.00 0.00 0.00 19.04 0.00
Current operating lease liabilities 1.51 1.33 2.47 2.41 0.00 0.00
Unredeemed gift card and merchandise credit liability 0.50 0.41 0.66 0.68 0.95 1.39
Current portion of term loans 0.47 0.36 0.00 0.00 0.00 0.00
Allowance for sales returns 0.39 0.46 0.88 0.79 1.10 0.61
Current finance lease liabilities 0.32 0.28 0.51 0.38 0.06 0.03
Foreign tax payable 0.08 0.00 0.00 0.00 0.00 0.00
Current portion of equipment promissory notes 0.02 0.25 0.78 0.90 0.05 0.35
Federal and state tax payable 0.00 0.57 1.71 0.56 0.00 0.31
Promissory notes on asset under construction 0.00 0.00 0.00 2.17 0.00 0.00
Provision for legal settlement 0.00 0.00 0.00 0.00 2.77 0.00
Other current liabilities 0.15 0.33 0.38 0.29 0.68 0.26
Other current liabilities 1.94% 2.65% 4.92% 5.75% 5.61% 2.95%
Current liabilities 16.69% 19.20% 31.80% 40.19% 50.84% 29.97%
Asset based credit facility 0.00 0.00 0.00 0.00 3.18 11.54
Term loan B, net 36.47 35.25 0.00 0.00 0.00 0.00
Term loan B-2, net 8.84 0.00 0.00 0.00 0.00 0.00
Term loan, net 0.00 0.00 0.00 0.00 0.00 4.59
Real estate loans 0.34 0.00 0.00 0.00 0.00 0.00
Convertible senior notes due 2024, net 0.79 3.33 9.71 10.83 0.00 0.00
Convertible senior notes due 2023, net 0.00 1.06 9.76 10.90 13.80 0.00
Convertible senior notes due 2020, net 0.00 0.00 0.00 0.00 15.01 14.60
Convertible senior notes due 2019, net 0.00 0.00 0.00 0.00 0.00 18.91
Non-current operating lease liabilities 9.53 9.76 15.46 16.76 0.00 0.00
Non-current finance lease liabilities 12.30 10.12 16.75 18.11 0.43 0.43
Deferred tax liabilities 0.12 0.00 0.00 0.00 0.00 0.00
Financing obligations under build-to-suit lease transactions 0.00 0.00 0.00 0.00 12.68 13.23
Deferred rent and lease incentives 0.00 0.00 0.00 0.00 2.98 3.17
Unrecognized tax benefits 0.06 0.06 0.11 0.12 0.17 0.22
Non-current portion of equipment promissory notes, net 0.00 0.02 0.50 1.27 0.00 0.00
Other non-current obligations 0.10 0.07 0.32 1.04 2.19 3.76
Deferred payroll taxes 0.00 0.00 0.15 0.00 0.00 0.00
Other non-current obligations 0.15% 0.16% 1.09% 2.44% 2.36% 3.97%
Non-current liabilities 68.53% 59.68% 52.78% 59.05% 50.43% 70.45%
Total liabilities 85.22% 78.88% 84.58% 99.24% 101.27% 100.42%
Preferred stock, $0.0001 par value per share, no shares issued or outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, $0.0001 par value per share 0.00 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 4.65 11.20 20.08 17.61 19.74 49.65
Accumulated other comprehensive income (loss) -0.05 -0.03 0.09 -0.11 -0.13 -0.01
Retained earnings (accumulated deficit) 10.17 9.95 -4.74 -16.73 -20.86 8.79
Treasury stock, at cost 0.00 0.00 0.00 0.00 -0.01 -58.85
Stockholders’ equity (deficit) 14.78% 21.12% 15.42% 0.76% -1.27% -0.42%
Total liabilities and stockholders’ equity (deficit) 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 capital structure has undergone a significant transformation between 2018 and 2023, characterized by a strategic shift from short-term obligations and convertible debt toward long-term structured loans and a strengthened equity position.

Current Liabilities and Short-Term Obligations
A substantial contraction in current liabilities is observed, falling from a peak of 50.84% in 2019 to 16.69% by January 28, 2023. This trend is primarily driven by a consistent decline in accounts payable, which decreased from 11.27% in 2018 to 3.13% in 2023. Similarly, accounts payable and accrued expenses as a collective group dropped from 18.40% to 7.06% over the same period, suggesting a reduction in reliance on trade credit to fund operations.
Long-Term Debt Evolution
The composition of non-current liabilities shifted from convertible senior notes to term loans. Convertible notes, which represented a significant portion of the balance sheet between 2018 and 2021, were largely phased out by 2023. In their place, Term Loan B emerged as a dominant financing instrument, rising from 0% in 2021 to 36.47% in 2023, supplemented by the introduction of Term Loan B-2 at 8.84% in the final year. This indicates a transition toward more traditional long-term bank debt.
Lease Liabilities
A notable increase in recognized lease obligations occurred starting in 2020. Non-current operating lease liabilities and non-current finance lease liabilities became prominent fixtures of the balance sheet, collectively accounting for approximately 21.83% of total liabilities and stockholders' equity in 2023. This reflects a significant portion of the company's long-term financing being tied to right-of-use assets.
Stockholders' Equity and Solvency
The company transitioned from a deficit position to a positive equity base. Stockholders' equity was negative in 2018 (-0.42%) and 2019 (-1.27%) before turning positive in 2020 (0.76%) and peaking in 2022 (21.12%). This recovery is mirrored in retained earnings, which moved from a deficit of -20.86% in 2019 to a positive 10.17% in 2023. Conversely, additional paid-in capital saw a sharp decline from 49.65% in 2018 to 4.65% in 2023, suggesting a reallocation of equity components or the impact of treasury stock activities in earlier periods.
Overall Leverage Trend
Total liabilities as a percentage of the total balance sheet remained high but showed a general moderating trend from 101.27% in 2019 to 85.22% in 2023. This reduction, coupled with the growth in stockholders' equity, indicates an improvement in the company's long-term solvency and a less leveraged capital structure compared to the 2018-2020 period.

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