RH (NYSE:RH)

Debt to Equity

The debt to equity ratio demonstrates a highly volatile pattern across the periods. Initial values are elevated, notably 102.71 and 29.94, followed by periods with missing data. From May 2020 onward, the ratio exhibits a sharp decline, stabilizing mostly under 5, with the lowest levels around 1.29 to 3.98 in recent periods. This indicates a trend towards reduced reliance on equity financing relative to debt after early fluctuations.

Debt to Equity (Including Operating Lease Liability)

Including operating lease liabilities increases this ratio significantly, especially early on where values reach above 90, then substantially falling to values below 5 in later periods. The pattern parallels the standard debt to equity ratio but consistently at a higher level, implying that operating lease liabilities form a sizable part of the company's financial leverage initially but become less dominant over time.

Debt to Capital

The debt to capital ratio remains close to or above 0.7 in most periods, with values fluctuating modestly between 0.56 and 1.17. The data suggest a relatively high proportion of debt in the capital structure throughout most intervals, with a slight downward movement occurring between 2019 and mid-2021, which then reverses with a rise towards early 2023. This implies mixed trends in the balance between debt and total capital.

Debt to Capital (Including Operating Lease Liability)

When including operating lease liabilities, the debt to capital ratio follows a similar trend to the base debt to capital ratio but at moderately higher levels. The inclusion of leases slightly elevates the debt ratio, peaking at 1.13 and 1.1 in early periods, then showing a downward trend to around 0.67 before climbing again toward 0.83 in early 2023. This reflects operating leases' considerable but varying impact on debt levels.

Debt to Assets

The debt to assets ratio maintains values around 0.5, indicating that about half of the asset base is financed through debt across most timeframes. Slight fluctuations appear, with peaks near 0.66 and declines to 0.31, but the ratio generally holds steady near this midpoint, suggesting consistent leverage relative to the asset base over time.

Debt to Assets (Including Operating Lease Liability)

Including operating lease liabilities shifts the debt to assets ratio upward across all periods, ranging from approximately 0.46 to 0.85 in early periods and trending around 0.6 to 0.7 in recent quarters. This pattern signals that incorporating lease liabilities results in a materially higher assessment of debt relative to assets, reflecting the growing importance of lease obligations in the company's financial structure.

Financial Leverage

The financial leverage ratio portrays significant initial volatility with exceptionally high values such as 202.38 and 131.13, followed by a marked decline to single-digit figures ranging approximately from 3.59 to 6.77 in later periods. This indicates a dramatic reduction in levered exposure over time, suggesting shifting capital structures or asset base adjustments leading to lower dependency on financial leverage.

Total Debt

The total debt exhibits a fluctuating but generally increasing trend over the analyzed period. Initial values around 887.6 million USD show some volatility with a notable peak reaching approximately 2.86 billion USD by October 2021, followed by sustained high debt levels remaining above 3.1 billion USD through early 2023. This indicates a significant increase in leverage over these years, with occasional short-term decreases, particularly between early 2020 and early 2021.

Stockholders’ Equity

Stockholders' equity shows a highly variable pattern in the earlier years, starting with a small positive value that turns negative in the periods around early 2019 to mid-2019, reflecting financial difficulties or losses. From late 2020 onward, equity begins a marked upward trajectory, rising steadily and reaching over 1.3 billion USD by mid-2022 before experiencing some fluctuations and a decline to approximately 839 million USD by the end of the period in April 2023. This growth phase indicates improved retained earnings or capital injections during that timeframe.

Debt to Equity Ratio

The debt to equity ratio initially shows extreme volatility, with an extraordinarily high ratio of over 102 in May 2018 and a sharp drop to below 6 by August 2018, reflecting dramatic changes in equity values rather than debt. Following intermittent missing data, the available data from mid-2020 shows a declining trend in the ratio from 69.5 down to below 2 by mid-2021, consistent with the increase in equity and somewhat stable debt levels. However, from late 2021 through early 2023, the ratio rises again, moving between approximately 2.2 and 4.0, indicating increased leverage and possibly renewed pressure on equity relative to debt.

Summary

Overall, the financial data reflects a company that experienced significant financial stress around 2018 and early 2019, characterized by negative equity and very high debt to equity ratios. Subsequently, there was a strong recovery phase marked by substantial equity growth and a reduction in leverage through 2021. Despite this improvement, debt levels remained high, and leverage increased again slightly in late 2022 and early 2023, indicating the company might be balancing growth initiatives with high leverage or responding to changing market conditions. Monitoring the debt to equity ratio and equity trends will be important for assessing ongoing financial stability.

The financial data indicates significant fluctuations and structural changes in the company's leverage and equity positions over the observed periods.

Total Debt (including operating lease liability)

Initially, total debt remained relatively stable, fluctuating around 800,000 to 950,000 thousand US dollars until early 2019. There is a marked and substantial increase beginning May 2019, where debt more than doubles to over 2,154,000 thousand US dollars. This elevated debt level persists through early 2022, peaking notably around October 2021 and April 2022, with amounts exceeding 3.7 million thousand US dollars. Following this peak, total debt shows a moderate decline but remains substantially higher than the early periods, stabilizing slightly below 3.7 million thousand US dollars by April 2023.

Stockholders’ Equity (Deficit)

The equity position exhibits considerable volatility over the timeframe. Initial quarters show low or negative equity, with a deficit around -23,000 to -247,000 thousand US dollars during late 2018 and early 2019. Subsequently, from mid-2020 onward, equity improves substantially, increasing steadily and reaching a peak exceeding 1.3 million thousand US dollars by mid-2022. However, from mid-2022 to early 2023, equity declines noticeably to around 784,661 thousand US dollars before showing a slight recovery to approximately 839,386 thousand US dollars by April 2023. This pattern reflects periods of balance sheet strengthening, followed by some erosion of equity.

Debt to Equity Ratio (including operating lease liability)

The debt-to-equity ratio demonstrates extreme variability, especially in the earlier periods where values are unusually high (e.g., 102.71) or affected by missing data points. In periods with available data post-2019, the ratio decreases steadily, reaching a low point near 2.03 in late 2021, corresponding with the rise in equity and stabilization of debt levels relative to equity. However, from late 2021 onwards, the ratio climbs again, showing increased leverage, reaching approximately 4.4 by April 2023. These changes suggest fluctuating financial risk and varying dependency on debt financing relative to equity.

Overall, the data reveals a period of aggressive debt accumulation starting in 2019, accompanied by an eventual build-up in stockholders’ equity, which led to a period of improved leverage ratios. Nonetheless, in the most recent quarters, leverage has increased again as equity has decreased, indicating a renewed emphasis on debt financing or possibly challenges affecting equity levels. These trends should be monitored closely as they have significant implications for the company’s financial stability and risk profile.

The data reveals significant fluctuations in the company's financial leverage and capital structure over the observed periods. Total debt experienced considerable volatility, with an initial increase peaking in mid-2019, followed by a decline through early 2021, before rising sharply again towards late 2021. After this peak, total debt remained relatively stable with a slight downward trend through the most recent quarter.

Total capital showed an overall upward trend from mid-2018 through early 2022, reaching a high in late 2021. However, after this peak, total capital exhibited a moderate decline through the subsequent quarters to the most recent period, indicating some reduction in the company's capital base.

The debt-to-capital ratio also reflected notable changes during the periods. Initially close to 1.0, this ratio declined steadily from 2019 into 2021, dropping below 0.6 by late 2021, suggesting a reduction in reliance on debt financing relative to overall capital. Following this trough, the ratio increased again, approaching 0.8 in the more recent quarters, which points to a renewed increase in leverage provided by debt. Despite this increase, the ratio remains below its initial peak levels.

Total Debt

The value demonstrated notable peaks and troughs, increasing sharply into mid-2019, before a marked decline that lasted until early 2021. Subsequently, there was a pronounced rise in late 2021, with stabilization afterward.

Total Capital

Total capital expanded steadily through the majority of the period, reaching a maximum in late 2021. A slight downward adjustment occurred subsequently, indicating some reduction in capital employed.

Debt to Capital Ratio

The ratio was initially high, close to or exceeding 1.0, indicating a high reliance on debt. This ratio decreased through 2020 and 2021, signaling reduced debt dependence. However, it increased again after late 2021, though it did not return to its earliest high levels, suggesting a partial reversal in capital structure strategy.

Overall, the company demonstrates a dynamic approach to capital management, with periods of increasing leverage followed by reductions, potentially reflecting strategic shifts, market conditions, or changes in financing policy. The recent rise in the debt-to-capital ratio after a period of deleveraging warrants attention for implications concerning financial risk and cost of capital going forward.

Total Debt (Including Operating Lease Liability)

The total debt exhibited notable volatility over the examined periods. Initially, debt levels hovered below one million US dollars in thousands, with a peak occurring in May 2019 at approximately 2.15 million, representing a marked increase compared to previous quarters. Following this spike, debt gradually reduced over the subsequent periods until early 2021. However, from early 2021 onwards, there was a sharp increase, culminating in a peak around October 2021 at about 3.48 million. After this peak, debt values remained elevated but relatively stable, fluctuating slightly above 3.3 to 3.7 million through the most recent periods.

Total Capital (Including Operating Lease Liability)

Total capital followed a generally upward trajectory over the time frame. Starting from under one million, it showed moderate growth until early 2019, after which it experienced a large rise, exceeding 1.9 million in May 2019. Capital continued to increase steadily, reaching approximately 2.5 million by late 2021 before demonstrating a substantial jump to over 4.4 million by January 2022. Through the most recent periods, total capital remained elevated around the 4.5 to 5 million range, indicating significant expansion in the capital base.

Debt to Capital Ratio (Including Operating Lease Liability)

This ratio exhibited significant fluctuations, reflecting changes in both debt and capital components. Initially near parity or above 0.9, the ratio peaked above 1.1 in mid-2019, indicating debt levels surpassing total capital during that time. From late 2019 through early 2021, the ratio decreased steadily, reaching a low near 0.67 in late 2021, suggesting a lower proportion of debt relative to capital. However, in the most recent periods, the ratio increased again, stabilizing around 0.8, which indicates a moderate leverage position with debt constituting approximately 80% of total capital.

Summary of Trends

Overall, the data reflects a period of significant financial growth and increased capital investment, accompanied by fluctuating debt levels. The pronounced rise in both total debt and capital after early 2019 points to increased financial activity and possible investments or acquisitions. The debt to capital ratio's peaks and troughs suggest phases of leverage adjustment, with the company managing its debt levels relative to capital expansion. Despite the increase in capital, the ratio's recent elevation indicates a maintained reliance on debt financing. These dynamics reveal a strategic balance between growth and leverage, with recent periods showing a more moderate debt proportion relative to an expanded capital base.

The analysis of the quarterly financial data reveals notable trends in the company's debt structure and asset base over the examined periods.

Total Debt

The total debt exhibits significant fluctuations throughout the periods. Initially, it was somewhat stable around 0.8 to 0.9 billion US dollars (thousands). From early 2019 onward, the debt increased considerably, peaking sharply at over 2.8 billion US dollars around late 2021. This peak is followed by a slight decline and stabilization in the subsequent quarters, with debt levels hovering around 3.1 billion US dollars by early 2023.

Total Assets

Total assets showed a consistent upward trend for most of the periods. Starting from about 1.75 billion US dollars, assets gradually increased, punctuated by a substantial rise beginning in late 2020 through early 2022, reaching a high of approximately 5.4 billion US dollars. After this peak, asset levels slightly declined but remained elevated relative to the earlier periods, maintaining values near the 5.3 billion US dollars mark by early 2023.

Debt to Assets Ratio

The debt to assets ratio indicates relative leverage changes over time. Initially fluctuating around 0.5, the ratio declined steadily from mid-2019 through late 2021, reaching a low near 0.31, suggesting reduced leverage and potentially improved balance sheet strength during that period. However, from early 2022 onward, the ratio reversed course, increasing again to approximately 0.58 by early 2023, indicative of rising leverage relative to asset size in the most recent quarters.

Overall, the data suggest that while asset growth has been robust, especially in the latter half of the period, debt levels have also increased significantly, particularly around late 2021. The initial deleveraging trend reversed in the most recent quarters, reflecting a return to higher leverage ratios. This pattern may indicate strategic shifts in financing or investment activities that warrant close monitoring for potential impacts on financial stability and risk profile.

Total debt (including operating lease liability)

The total debt exhibited considerable fluctuations over the observed periods. Initially, it remained relatively stable, ranging between approximately 840 million and 960 million US dollars from May 2018 to February 2019. A marked spike occurred thereafter, with total debt reaching over 2.1 billion US dollars by May 2019. Following this peak, there was a gradual decline to below 1.8 billion by early 2020, accompanied by further reductions to approximately 1.5 billion by October 2020. Subsequently, debt levels increased sharply, peaking again at nearly 3.5 billion in late 2021. From this high, the total debt slightly decreased but stayed above 3.6 billion through early 2023, indicating a significant increase compared to the earlier years.

Total assets

Total assets demonstrated a generally upward trend throughout the entire timeframe. Starting near 1.75 billion US dollars in mid-2018, a steady increase was observed, reaching around 2.5 billion by early 2020 and continuing to rise past 3.4 billion by mid-2021. The most substantial growth occurred between mid-2021 and early 2022 when assets surged dramatically to over 5.4 billion. After this period, total assets fluctuated somewhat but remained close to the 5.3 billion level through the first quarter of 2023, reflecting a strong expansion in the company's asset base.

Debt to assets ratio (including operating lease liability)

The debt to assets ratio fluctuated in correlation with the changes observed in debt and assets. Starting at a moderate level of 0.51 in mid-2018, the ratio declined to 0.46 by August 2018, then increased again to around 0.52 in late 2018. A sharp rise was noted in mid-2019, peaking at 0.85, reflecting the significant increase in debt relative to assets. Subsequently, the ratio declined steadily, reaching 0.49 by mid-2021, coinciding with the growth in assets outpacing debt. However, after October 2021, the ratio climbed again, stabilizing around 0.7 through early 2023, indicating a higher leverage position over the more recent periods.

Overall analysis

The data reveals a financial profile marked by periods of increased leverage and asset growth. The company experienced two major phases of debt escalation: first in mid-2019 and again in late 2021. While total assets grew consistently, particularly with a notable surge in the second half of the timeline, the debt-to-assets ratio indicates a pattern of increased financial leverage especially towards the end. This suggests that although asset acquisition has been significant, it has been partially financed through elevated debt levels. The sustained ratio around 0.7 in recent quarters points to a cautious but leveraged capital structure. The trends imply a strategic expansion with a balanced but increasing reliance on borrowed funds.

Total Assets

Over the examined period, total assets displayed notable variability with an overall increasing trend. Initially, total assets rose moderately from approximately 1.75 billion to about 1.84 billion between May 2018 and November 2018. A significant surge is observed beginning in the first quarter of 2019, where assets jumped sharply to above 2.5 billion by May 2019. Following this peak, total assets fluctuated within the 2.3 to 2.9 billion range through early 2021 before escalating substantially to peak levels above 5.4 billion in late 2021. Subsequent periods saw some instability, including a decline to roughly 5.3 billion by April 2023, but total assets broadly remained elevated compared to earlier years.

Stockholders’ Equity (Deficit)

Stockholders’ equity showed considerable volatility and a pronounced recovery trajectory. Initially, equity was minimal and sharply negative in early 2019, reflecting a deficit position. From mid-2019 through early 2020, equity gradually improved but remained low, even dipping into negative territory initially. Starting in late 2020, a steady and substantial increase is evident, with equity rising into positive figures and then expanding steadily to exceed 1.3 billion by mid-2022. Although a minor reduction occurred thereafter, equity levels remained significantly higher than in the earlier periods, indicating improved capitalization and financial stability.

Financial Leverage

Financial leverage, expressed as a ratio, exhibited extreme initial volatility and a general declining trend over time. The ratio started extraordinarily high at over 200 in mid-2018, rapidly dropping to more moderate single-digit levels by early 2021. Some fluctuations occurred subsequently, with leverage ratios oscillating between approximately 4 and 7. The declining leverage trend through late 2021 and into 2023 suggests a progressive reduction in reliance on debt relative to equity, aligning with the improvements observed in stockholders' equity. This movement potentially reflects enhanced financial structure and reduced risk exposure.

Overall Insights

The data reflect a company experiencing substantial changes in asset base, equity capital, and leverage over the period. The striking asset growth, particularly from 2020 onward, combined with the marked equity recovery and decreasing financial leverage, suggests a strengthening financial position. The initial periods of negative or low equity and extreme leverage indicate prior distress or restructuring, followed by a phase of rebuilding financial health. The maintenance of relatively stable leverage ratios in the range of 4 to 7 in the later years implies a more balanced capital structure. Nevertheless, the recent slight decline in both total assets and equity warrants monitoring to assess ongoing financial sustainability.