Debt to Equity
since 2013
Calculation
RH, debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 3.98 | = | 3,120,153) | ÷ | 784,661) |
| Jan 29, 2022 | 2.37 | = | 2,771,334) | ÷ | 1,170,277) |
| Jan 30, 2021 | 2.38 | = | 1,064,505) | ÷ | 447,026) |
| Feb 1, 2020 | 69.50 | = | 1,296,213) | ÷ | 18,651) |
| Feb 2, 2019 | — | = | 921,597) | ÷ | (22,962) |
| Feb 3, 2018 | — | = | 860,194) | ÷ | (7,336) |
| Jan 28, 2017 | 0.60 | = | 548,344) | ÷ | 919,869) |
| Jan 30, 2016 | 0.59 | = | 519,801) | ÷ | 886,160) |
| Jan 31, 2015 | 0.40 | = | 284,388) | ÷ | 702,916) |
| Feb 1, 2014 | 0.16 | = | 85,425) | ÷ | 545,272) |
| Feb 2, 2013 | 0.18 | = | 82,501) | ÷ | 451,611) |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
1 US$ in thousands
The financial trajectory from 2013 to 2023 indicates a substantial shift in capital structure, moving from a conservative equity-funded model to a highly leveraged position. Total debt increased consistently over the decade, escalating from approximately $82.5 million in 2013 to over $3.12 billion by 2023.
- Total Debt Expansion
- A persistent upward trend in total obligations is observed, with a particularly sharp acceleration beginning in 2022. Between 2021 and 2023, debt levels increased significantly, rising from $1.06 billion to $3.12 billion, representing a marked increase in the company's total liabilities.
- Stockholders' Equity Volatility
- Equity experienced significant fluctuations, characterized by steady growth until 2017, followed by a transition into a deficit position during 2018 and 2019. A recovery phase occurred between 2020 and 2022, with equity peaking at $1.17 billion, before declining to $784.66 million in 2023.
- Debt-to-Equity Ratio Evolution
- The leverage ratio remained below 1.00 from 2013 through 2017, suggesting a reliance on equity over debt. The period of negative equity in 2018 and 2019 created an instability in the ratio, which spiked to 69.50 in 2020 as equity returned to a marginally positive value. While the ratio stabilized between 2.37 and 2.38 during 2021 and 2022, it rose sharply to 3.98 by 2023, reflecting an increased reliance on debt relative to shareholders' funds.
The overall trend demonstrates a strategic pivot toward aggressive borrowing. The combination of rising total debt and a recent decline in stockholders' equity has resulted in a significantly higher debt-to-equity ratio, indicating a more leveraged financial profile than that maintained in the early part of the decade.
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Comparison to Competitors
RH, debt to equity, long-term trends, comparison to competitors
| RH | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 28, 2023 | 3.98 | 0.29 | 27.65 | — | 0.53 |
| Jan 29, 2022 | 2.37 | 0.46 | — | — | 0.56 |
| Jan 30, 2021 | 2.38 | 0.35 | 11.29 | 15.16 | 1.04 |
| Feb 1, 2020 | 69.50 | 0.34 | — | 9.79 | 0.38 |
| Feb 2, 2019 | — | 0.38 | — | 4.45 | 0.44 |
| Feb 3, 2018 | — | 0.54 | 18.59 | 2.89 | 0.43 |
| Jan 28, 2017 | 0.60 | 0.89 | 5.45 | 2.44 | 0.49 |
| Jan 30, 2016 | 0.59 | 0.40 | 3.37 | 1.65 | 0.38 |
| Jan 31, 2015 | 0.40 | 0.62 | 1.84 | 1.14 | 0.38 |
| Feb 1, 2014 | 0.16 | 0.77 | 1.18 | 0.89 | 0.30 |
| Feb 2, 2013 | 0.18 | 0.33 | 0.61 | 0.66 | 0.21 |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
RH, debt to equity, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| RH | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 28, 2023 | 3.98 | 0.71 |
| Jan 29, 2022 | 2.37 | 0.93 |
| Jan 30, 2021 | 2.38 | 0.77 |
| Feb 1, 2020 | 69.50 | 0.86 |
| Feb 2, 2019 | — | 1.03 |
| Feb 3, 2018 | — | 1.24 |
| Jan 28, 2017 | 0.60 | 1.54 |
| Jan 30, 2016 | 0.59 | 1.15 |
| Jan 31, 2015 | 0.40 | 1.04 |
| Feb 1, 2014 | 0.16 | 0.88 |
| Feb 2, 2013 | 0.18 | 0.53 |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).
Comparison to Industry (Consumer Discretionary)
RH, debt to equity, long-term trends, comparison to industry (consumer discretionary)
| RH | Consumer Discretionary | |
|---|---|---|
| Jan 28, 2023 | 3.98 | 1.28 |
| Jan 29, 2022 | 2.37 | 1.44 |
| Jan 30, 2021 | 2.38 | 1.41 |
| Feb 1, 2020 | 69.50 | 2.17 |
| Feb 2, 2019 | — | 2.60 |
| Feb 3, 2018 | — | 2.59 |
| Jan 28, 2017 | 0.60 | 2.55 |
| Jan 30, 2016 | 0.59 | 2.21 |
| Jan 31, 2015 | 0.40 | 1.88 |
| Feb 1, 2014 | 0.16 | 1.60 |
| Feb 2, 2013 | 0.18 | 1.25 |
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), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02).