Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
RH, liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | RH current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | RH quick ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | RH cash ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Current Ratio
RH, current ratio calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 2,512,664) | 3,091,442) | 801,484) | 596,952) | 682,693) | 644,930) | |
| Current liabilities | 885,973) | 1,063,758) | 921,632) | 982,912) | 918,172) | 519,335) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 2.84 | 2.91 | 0.87 | 0.61 | 0.74 | 1.24 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 1.05 | 0.94 | 1.14 | 1.05 | — | — | |
| Home Depot Inc. | 1.41 | 1.01 | 1.23 | 1.08 | — | — | |
| Lowe’s Cos. Inc. | 1.10 | 1.02 | 1.19 | 1.01 | — | — | |
| TJX Cos. Inc. | 1.21 | 1.27 | 1.46 | 1.24 | — | — | |
| Current Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.10 | 0.98 | 1.17 | 1.06 | — | — | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | 1.20 | 1.15 | 1.25 | 1.18 | — | — | |
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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,512,664 ÷ 885,973 = 2.84
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | RH current ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Quick Ratio
RH, quick ratio calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,508,101) | 2,177,889) | 100,446) | 47,658) | 5,803) | 17,907) | |
| Restricted cash | 3,662) | —) | —) | —) | —) | —) | |
| Accounts receivable, net | 59,763) | 57,914) | 59,474) | 48,979) | 40,224) | 31,412) | |
| Total quick assets | 1,571,526) | 2,235,803) | 159,920) | 96,637) | 46,027) | 49,319) | |
| Current liabilities | 885,973) | 1,063,758) | 921,632) | 982,912) | 918,172) | 519,335) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.77 | 2.10 | 0.17 | 0.10 | 0.05 | 0.09 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.81 | 0.69 | 0.86 | 0.83 | — | — | |
| Home Depot Inc. | 0.26 | 0.20 | 0.47 | 0.23 | — | — | |
| Lowe’s Cos. Inc. | 0.09 | 0.07 | 0.28 | 0.06 | — | — | |
| TJX Cos. Inc. | 0.59 | 0.64 | 1.01 | 0.50 | — | — | |
| Quick Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.68 | 0.57 | 0.77 | 0.68 | — | — | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | 0.85 | 0.81 | 0.92 | 0.88 | — | — | |
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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 1,571,526 ÷ 885,973 = 1.77
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | RH quick ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Cash Ratio
RH, cash ratio calculation, comparison to benchmarks
| Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 1,508,101) | 2,177,889) | 100,446) | 47,658) | 5,803) | 17,907) | |
| Restricted cash | 3,662) | —) | —) | —) | —) | —) | |
| Total cash assets | 1,511,763) | 2,177,889) | 100,446) | 47,658) | 5,803) | 17,907) | |
| Current liabilities | 885,973) | 1,063,758) | 921,632) | 982,912) | 918,172) | 519,335) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.71 | 2.05 | 0.11 | 0.05 | 0.01 | 0.03 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.53 | 0.45 | 0.68 | 0.67 | — | — | |
| Home Depot Inc. | 0.12 | 0.08 | 0.34 | 0.12 | — | — | |
| Lowe’s Cos. Inc. | 0.09 | 0.07 | 0.28 | 0.06 | — | — | |
| TJX Cos. Inc. | 0.53 | 0.59 | 0.97 | 0.45 | — | — | |
| Cash Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.44 | 0.37 | 0.61 | 0.54 | — | — | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | 0.48 | 0.47 | 0.63 | 0.58 | — | — | |
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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,511,763 ÷ 885,973 = 1.71
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | RH cash ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |