Common-Size Income Statement
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to Earnings (P/E) since 2013
- Price to Sales (P/S) since 2013
- Aggregate Accruals
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RH, common-size consolidated income statement
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).
- Gross profit and cost of goods sold trends
- Gross profit as a percentage of net revenues exhibited a consistent upward trend from 34.8% in 2018 to 50.47% in 2023. This improvement corresponds with a steady decline in the cost of goods sold, which decreased from -65.2% to -49.53% over the same period. The data indicates enhanced operational efficiency and cost management resulting in expanding gross margins.
- Selling, general and administrative expenses
- These expenses generally fluctuated between approximately -24.7% and -30.4% of net revenues, without a clear unidirectional trend. Notably, the expense ratio decreased to -24.69% in 2022 but increased again to -30.35% in 2023, suggesting variable control over operating expenses year to year.
- Operating income
- Income from operations showed significant growth, rising from a modest 5.38% of net revenues in 2018 to a peak of 24.67% in 2022, before slightly declining to 20.11% in 2023. This indicates a marked improvement in profitability driven primarily by improved gross profit margins, despite some volatility in operating expenses.
- Interest expense and net interest
- Interest expense as a percentage of net revenues displayed fluctuations, generally decreasing from -2.59% in 2018 to -1.78% in 2022, but increasing sharply to -4.23% in 2023. Interest income remained negligible through most years but notably jumped to 1.07% in 2023. Net interest expense followed a similar declining trend to 2022 before increasing in 2023, reflecting potential changes in financing structure or interest rates.
- Debt extinguishment and goodwill impairment
- Gains from extinguishment of debt were irregular but showed a significant negative impact (-4.72%) in 2023, contrasting with minor gains or losses in prior years. Goodwill and tradename impairment charges were noted in several years but were absent for some periods, indicating occasional impairment losses affecting profitability.
- Other expenses
- Other expenses showed a decreasing trend from -4.15% in 2018 to -2.58% in 2022, then spiked to -7.88% in 2023. This spike suggests exceptional or non-recurring costs impacting the latest fiscal year.
- Pre-tax income and income tax effects
- Income before income taxes and equity method investments increased substantially from 1.24% in 2018 to 22.09% in 2022, before dropping to 12.24% in 2023. The income tax expense generally ranged from about -1.15% to -3.67%, except in 2023 when a tax benefit of 2.54% was recorded, positively affecting net income.
- Net income and equity method investments
- Net income showed a strong upward trajectory from 0.09% of net revenues in 2018 to 18.32% in 2022, followed by a decline to 14.72% in 2023. Share of equity method investment losses, included from 2021 onward, had a minor negative impact on net income, with small percentages involved. Overall, the company demonstrated improved profitability over time, despite some reversals in the most recent year.
- Summary of overall financial performance trends
- The data reflect an overall improvement in profitability driven by increased gross margins and effective cost management on the cost of goods sold line. Operating profits grew substantially until 2022, supported by the positive changes in expense control and gross profit. However, 2023 showed signs of increased expenses and interest costs, along with a significant charge related to debt extinguishment and higher other expenses, contributing to a decline in income before taxes and net income that year. The favorable tax benefit in 2023 partially offset the profit decline. The pattern indicates a predominantly positive financial trend with some volatility and challenges in the latest period that warrant closer monitoring.