Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
RH, liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
- Current Ratio
- The current ratio exhibits a declining trend from the initial value of 2.06 in April 2017 to a low point of approximately 0.61-0.62 around February 2020 and November 2019, indicating a decrease in the company's short-term liquidity and ability to cover its current liabilities with current assets during this period. From early 2020 onwards, the ratio gradually improves, reaching significantly higher levels by late 2021 and early 2022, with values peaking around 3.49 in early 2023. This recovery suggests an enhancement in liquidity, possibly reflecting a stronger asset base or reduced current liabilities.
- Quick Ratio
- The quick ratio remains notably low through much of the period between 2017 and early 2021, staying below 0.3, which indicates limited availability of liquid assets (excluding inventory) to meet immediate liabilities. The ratio is particularly low between 2017 and 2020, with values often below 0.1. Beginning in late 2021, there is a sharp and pronounced increase, peaking above 2.0 by early 2022, followed by a slight decrease but remaining well above earlier levels through early 2023. This change reflects a substantial improvement in the company's liquid asset position relative to its current liabilities during the later periods.
- Cash Ratio
- The cash ratio maintains very low values for most of the earlier periods from 2017 through early 2021, often near or below 0.1, signaling minimal cash or cash equivalents available to cover current liabilities. Around mid-2021, a noticeable and rapid increase occurs, with the ratio exceeding 2.0 from late 2021 into early 2023. This indicates a dramatic enhancement in cash reserves relative to short-term liabilities, suggesting improved cash management or significant cash accumulation during these periods.
Current Ratio
RH, current ratio calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets fluctuated throughout the periods, initially showing a declining trend from approximately $915 million in April 2017 to about $645 million in February 2018. Following this decline, current assets demonstrated periods of recovery and growth, reaching over $1.13 billion by October 2021. After this peak, there was a notable drop to approximately $2.5 billion to $2.9 billion in the subsequent periods, indicating significant growth in the later periods compared to earlier years. The values towards the end of the series remain relatively stable around $2.5 billion.
- Current Liabilities
- Current liabilities displayed variability over the intervals, starting at roughly $444 million in April 2017 and rising initially to exceed $918 million by February 2019. Afterwards, liabilities maintained a relatively high level with fluctuations mostly between $850 million and $1.36 billion through mid-2022. Towards the end of the period, current liabilities decreased steadily, reaching approximately $851 million by April 2023. This pattern suggests increased short-term obligations in the middle periods followed by a reduction in more recent quarters.
- Current Ratio
- The current ratio, representing the ability to cover current liabilities with current assets, exhibited a general decline from a healthy 2.06 ratio in April 2017 down to a low near 0.61 by February 2020, indicating deteriorating short-term liquidity. Following this trough, the ratio began improving from mid-2020 onward, peaking sharply at about 3.49 in October 2022. This marked improvement demonstrates enhanced liquidity and a stronger short-term financial position in the most recent periods. The ratio remained elevated near 2.9 by April 2023, substantiating sustained liquidity strength.
- Overall Trend and Insights
- The data indicate an initial weakening in liquidity and short-term financial health from 2017 through early 2020, characterized by declining current assets, increasing current liabilities, and shrinking current ratios below 1.0, which signifies potential difficulties in meeting short-term obligations. From mid-2020 onwards, there is a clear reversal with a substantial increase in current assets, a reduction in current liabilities, and current ratios rising well above 2.5, suggesting a robust improvement in the company’s liquidity position. This shift could reflect strategic asset management, liability reduction, or other operational changes leading to improved financial stability in the recent periods.
Quick Ratio
RH, quick ratio calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||||||
| Restricted cash | |||||||||||||||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets display significant volatility over the observed periods. Initially, values fluctuate around 50,000 to 60,000 US$ thousands until early 2019, followed by a strong increase starting in mid-2019. Notably, from May 2019 to July 2021, there is a major upward trend reaching peaks above 2,000,000 US$ thousands. Subsequently, a decline is visible towards the latest periods, with values dropping to approximately 1,580,000 US$ thousands by April 2023.
- Current Liabilities
- Current liabilities also display considerable fluctuations but with generally elevated values throughout the periods. Beginning from around 440,000 US$ thousands, liabilities rise steadily to exceed 900,000 US$ thousands by early 2018. From mid-2018 onwards, liabilities often hover near or above one million US$ thousands, reaching peaks above 1,300,000 US$ thousands in early 2022. In the most recent periods, the trend shifts downward, ending at approximately 850,000 US$ thousands.
- Quick Ratio
- The quick ratio remains quite low in the initial years, consistently below 0.3, indicating limited short-term liquidity relative to current liabilities. Starting in early 2021, a marked improvement is evident, with values rising sharply and consistently above 1.7, peaking at 2.37 in late 2022. This suggests a significant strengthening of liquid assets relative to current liabilities during this period. Although there is a slight dip in the last observed period, the ratio remains substantially improved compared to earlier years.
- Overall Analysis
- The data reflects a period of constrained liquidity and elevated liabilities in the early years, with total quick assets comparatively low relative to current liabilities. A pronounced improvement in liquidity ratios and quick assets begins in 2019 and continues through 2022, demonstrating enhanced capacity to cover short-term obligations. Despite some volatility and recent declines, the overall trend indicates strengthened liquidity and a potentially more stable short-term financial position towards the end of the timeline.
Cash Ratio
RH, cash ratio calculation (quarterly data)
| Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||||||||||||
| Restricted cash | |||||||||||||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Amazon.com Inc. | |||||||||||||||||||||||||||||||||
| Home Depot Inc. | |||||||||||||||||||||||||||||||||
| Lowe’s Cos. Inc. | |||||||||||||||||||||||||||||||||
| TJX Cos. Inc. | |||||||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
-
The total cash assets exhibit significant fluctuations throughout the observed periods. Initially, the cash assets decrease sharply from approximately $80.2 million in April 2017 to around $5.8 million by February 2019. Subsequently, a notable recovery occurs with a peak reaching nearly $2.2 billion in October 2021. Following this peak, the cash balances show a gradual decline toward approximately $1.5 billion by April 2023.
- Current Liabilities
-
Current liabilities generally trend upward from about $444 million in April 2017, reaching a peak of approximately $1.37 billion in April 2022. Despite some short-term fluctuations, liabilities remain at elevated levels compared to the start of the period, ending close to $851 million in April 2023. There is a notable surge in liabilities during mid-2018 and a sustained high level from 2020 onward.
- Cash Ratio
-
The cash ratio shows a low and stable trend around or below 0.1 from April 2017 until mid-2020, indicating limited immediate liquidity relative to current liabilities. Beginning in early 2021, the ratio rises sharply, peaking above 2.3 in late 2022, signifying a substantial increase in liquid cash relative to short-term obligations. The ratio slightly declines thereafter but remains well above prior levels, maintaining a strong liquidity position through April 2023.
- Overall Trends and Insights
-
The company’s liquidity profile has transformed considerably over the analyzed timeframe. Early periods demonstrate low cash reserves against sizable liabilities, reflected in a low cash ratio, suggesting tighter liquidity. However, beginning in 2021, there is a marked buildup of cash assets accompanied by an improved cash ratio, indicating enhanced capacity to cover short-term liabilities with readily available cash. Despite the elevated liabilities throughout the period, the improved liquidity position in recent quarters may reflect strategic cash management or capital raising activities. The subsequent slight decline in both cash assets and cash ratio in 2023 could warrant ongoing monitoring to assess sustainability of liquidity levels.