Balance Sheet: Liabilities and Stockholders’ Equity
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.
Paying user area
Try for free
RH pages available for free this week:
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Selected Financial Data since 2013
- Net Profit Margin since 2013
- Return on Assets (ROA) since 2013
- Total Asset Turnover since 2013
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to RH for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
RH, consolidated balance sheet: liabilities and stockholders’ equity
US$ in thousands
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).
- Accounts Payable and Related Accrued Expenses
- Accounts payable decreased from $195.3 million in early 2018 to $166.1 million in early 2023, showing variability with a peak at $242.0 million in early 2022. Accrued compensation steadily increased until 2022, reaching $96.9 million, but declined to $76.7 million in 2023. Similarly, accrued occupancy rose consistently across the period from $8.6 million to $28.8 million. Other accrued expenses showed fluctuations, with notable increases in 2023 reaching $31.6 million. Overall, accounts payable and accrued expenses increased substantially from $318.8 million in 2018 to a peak of $442.4 million in 2022 before declining to $374.9 million in 2023.
- Deferred Revenue and Customer Deposits
- Deferred revenue and customer deposits more than doubled from $149.4 million in early 2018 to a peak of $387.9 million in early 2022, then declined to $325.8 million in early 2023. This indicates significant growth in advance customer payments or obligations during the period, with some reversal in the latest year.
- Convertible Senior Notes
- A varied pattern emerged for convertible senior notes. Notes due in 2019 and 2020 showed large values in earlier years but disappeared in subsequent periods, indicating maturity or redemption. Newer notes due 2023 and 2024 appeared in later years, with substantial issuances, but also showed reductions in 2023, reflecting partial repayments or conversions. Overall, the convertible notes portfolio evolved with shifts in maturity profiles and outstanding balances.
- Lease and Finance Liabilities
- Current and non-current operating lease liabilities increased substantially from 2020 onward, with non-current operating lease liabilities growing from $410.0 million in 2021 to $540.5 million in 2022, slightly declining to $505.8 million in 2023. Non-current finance lease liabilities expanded dramatically from $7.5 million in 2018 to $653.1 million in 2023, reflecting increasing adoption or recognition of lease-related obligations under applicable accounting standards.
- Loan and Credit Facilities
- Term loan B was introduced in 2022 with a substantial balance exceeding $1.9 billion, slightly declining in 2023, with an additional tranche (B-2) appearing in 2023 at $469.2 million. Earlier facilities such as the asset-based credit facility and term loan balances diminished or disappeared over time. Real estate loans appeared in 2023 at $17.9 million. Current portion of term loans emerged in recent years, reflecting short-term repayments or scheduled maturities.
- Current Liabilities
- Current liabilities saw an overall increase from $519.3 million in 2018 to $1.06 billion in 2022, with a decrease to $885.9 million in 2023. Growth was driven by increases in accounts payable, deferred revenue, accrued expenses, and short-term portions of debt, while some liabilities like accrued freight and duty declined in later years.
- Non-current Liabilities
- Non-current liabilities rose from $1.22 billion in 2018 to $3.64 billion in 2023, indicating substantial long-term obligations growth. This increase reflects expansions in term loans, lease liabilities, convertible notes, and other obligations. The sharp rise after 2021 suggests increased leverage or financing activities in the medium to long term.
- Total Liabilities
- Total liabilities nearly tripled from $1.74 billion in early 2018 to $4.52 billion in early 2023. The most significant growth occurred from 2021 onward, driven by increases in both current and non-current liabilities, consistent with expanded borrowing and financial commitments.
- Stockholders’ Equity
- Stockholders’ equity turned positive in 2020 following prior deficits, reaching a peak of $1.17 billion in early 2022 but then declining to $784.7 million in 2023. Retained earnings showed a similar pattern, moving from large deficits in 2019 and 2020 to positive accumulated earnings in 2022 and 2023, indicating recovery or improved profitability. Additional paid-in capital peaked in 2022 at $620.6 million but declined notably to $247.1 million in 2023, which could be associated with transactions affecting equity structure.
- Comprehensive Income and Treasury Stock
- Accumulated other comprehensive income fluctuated within a narrow range and did not demonstrate clear trends. Treasury stock, recorded only in 2018, showed a large negative balance and was not present in later years, possibly indicating repurchases or retirement of shares during that period.
- Summary Insights
- Overall, the data depicts a company experiencing increased financial leverage and contractual obligations, particularly through term loans, lease liabilities, and convertible notes. Current liabilities and deferred revenues also showed noteworthy expansion, suggesting increased operating scale or changes in cash flow timing. Equity improved materially after 2019 but showed signs of decline in the most recent period, suggesting variability in profitability or capital transactions. Lease-related liabilities grew substantially due to accounting or operational changes. The financial position indicates a trend toward larger scale and complexity in financing and operations, with substantial obligations to manage going forward.