Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
RH, solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | RH debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | RH debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | RH debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | RH debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | RH debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | RH debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | RH financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | RH interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | RH fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity
RH, debt to equity 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) | |||||||
| Convertible senior notes due 2024, net | —) | 3,600) | —) | —) | —) | —) | |
| Convertible senior notes due 2023, net | 1,696) | 9,389) | 2,354) | —) | —) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | 290,532) | —) | —) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | 343,789) | —) | |
| Current portion of term loans | 25,000) | 20,000) | —) | —) | —) | —) | |
| Current finance lease liabilities | 17,007) | 15,511) | 14,671) | 9,188) | 1,074) | 471) | |
| Current portion of equipment promissory notes | 1,160) | 13,625) | 22,747) | 22,009) | 892) | 6,033) | |
| Asset based credit facility | —) | —) | —) | —) | 57,500) | 199,970) | |
| Term loan B, net | 1,936,529) | 1,953,203) | —) | —) | —) | —) | |
| Term loan B-2, net | 469,245) | —) | —) | —) | —) | —) | |
| Term loan, net | —) | —) | —) | —) | —) | 79,499) | |
| Real estate loans | 17,909) | —) | —) | —) | —) | —) | |
| Convertible senior notes due 2024, net | 41,724) | 184,461) | 281,454) | 264,982) | —) | —) | |
| Convertible senior notes due 2023, net | —) | 59,002) | 282,956) | 266,658) | 249,151) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | —) | 271,157) | 252,994) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | —) | 327,731) | |
| Non-current finance lease liabilities | 653,050) | 560,550) | 485,481) | 442,988) | 7,720) | 7,509) | |
| Non-current portion of equipment promissory notes, net | —) | 1,129) | 14,614) | 31,053) | —) | —) | |
| Total debt | 3,163,320) | 2,820,470) | 1,104,277) | 1,327,410) | 931,283) | 874,207) | |
| Stockholders’ equity (deficit) | 784,661) | 1,170,277) | 447,026) | 18,651) | (22,962) | (7,336) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 4.03 | 2.41 | 2.47 | 71.17 | — | — | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | 0.39 | 0.59 | 0.54 | 0.66 | 0.83 | — | |
| Home Depot Inc. | 27.65 | — | 11.29 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 15.16 | 9.79 | 4.45 | — | |
| TJX Cos. Inc. | 0.53 | 0.56 | 1.04 | 0.38 | 0.44 | — | |
| Debt to Equity, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.82 | 1.06 | 0.93 | 1.17 | 1.44 | — | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | 1.37 | 1.54 | 1.52 | 2.37 | 2.78 | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity (deficit)
= 3,163,320 ÷ 784,661 = 4.03
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | RH debt to equity ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
RH, debt to equity (including operating lease liability) 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) | |||||||
| Convertible senior notes due 2024, net | —) | 3,600) | —) | —) | —) | —) | |
| Convertible senior notes due 2023, net | 1,696) | 9,389) | 2,354) | —) | —) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | 290,532) | —) | —) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | 343,789) | —) | |
| Current portion of term loans | 25,000) | 20,000) | —) | —) | —) | —) | |
| Current finance lease liabilities | 17,007) | 15,511) | 14,671) | 9,188) | 1,074) | 471) | |
| Current portion of equipment promissory notes | 1,160) | 13,625) | 22,747) | 22,009) | 892) | 6,033) | |
| Asset based credit facility | —) | —) | —) | —) | 57,500) | 199,970) | |
| Term loan B, net | 1,936,529) | 1,953,203) | —) | —) | —) | —) | |
| Term loan B-2, net | 469,245) | —) | —) | —) | —) | —) | |
| Term loan, net | —) | —) | —) | —) | —) | 79,499) | |
| Real estate loans | 17,909) | —) | —) | —) | —) | —) | |
| Convertible senior notes due 2024, net | 41,724) | 184,461) | 281,454) | 264,982) | —) | —) | |
| Convertible senior notes due 2023, net | —) | 59,002) | 282,956) | 266,658) | 249,151) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | —) | 271,157) | 252,994) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | —) | 327,731) | |
| Non-current finance lease liabilities | 653,050) | 560,550) | 485,481) | 442,988) | 7,720) | 7,509) | |
| Non-current portion of equipment promissory notes, net | —) | 1,129) | 14,614) | 31,053) | —) | —) | |
| Total debt | 3,163,320) | 2,820,470) | 1,104,277) | 1,327,410) | 931,283) | 874,207) | |
| Current operating lease liabilities | 80,384) | 73,834) | 71,524) | 58,924) | —) | —) | |
| Non-current operating lease liabilities | 505,809) | 540,513) | 448,169) | 409,930) | —) | —) | |
| Total debt (including operating lease liability) | 3,749,513) | 3,434,817) | 1,623,970) | 1,796,264) | 931,283) | 874,207) | |
| Stockholders’ equity (deficit) | 784,661) | 1,170,277) | 447,026) | 18,651) | (22,962) | (7,336) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 4.78 | 2.94 | 3.63 | 96.31 | — | — | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.77 | 1.06 | 0.96 | 1.08 | 1.25 | — | |
| Home Depot Inc. | 32.24 | — | 13.16 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 18.24 | 12.04 | 4.45 | — | |
| TJX Cos. Inc. | 2.00 | 2.08 | 2.66 | 1.93 | 0.44 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.31 | 1.67 | 1.46 | 1.76 | 1.82 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 1.72 | 1.94 | 1.90 | 2.84 | 3.08 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity (deficit)
= 3,749,513 ÷ 784,661 = 4.78
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | RH debt to equity ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Capital
RH, debt to capital 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) | |||||||
| Convertible senior notes due 2024, net | —) | 3,600) | —) | —) | —) | —) | |
| Convertible senior notes due 2023, net | 1,696) | 9,389) | 2,354) | —) | —) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | 290,532) | —) | —) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | 343,789) | —) | |
| Current portion of term loans | 25,000) | 20,000) | —) | —) | —) | —) | |
| Current finance lease liabilities | 17,007) | 15,511) | 14,671) | 9,188) | 1,074) | 471) | |
| Current portion of equipment promissory notes | 1,160) | 13,625) | 22,747) | 22,009) | 892) | 6,033) | |
| Asset based credit facility | —) | —) | —) | —) | 57,500) | 199,970) | |
| Term loan B, net | 1,936,529) | 1,953,203) | —) | —) | —) | —) | |
| Term loan B-2, net | 469,245) | —) | —) | —) | —) | —) | |
| Term loan, net | —) | —) | —) | —) | —) | 79,499) | |
| Real estate loans | 17,909) | —) | —) | —) | —) | —) | |
| Convertible senior notes due 2024, net | 41,724) | 184,461) | 281,454) | 264,982) | —) | —) | |
| Convertible senior notes due 2023, net | —) | 59,002) | 282,956) | 266,658) | 249,151) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | —) | 271,157) | 252,994) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | —) | 327,731) | |
| Non-current finance lease liabilities | 653,050) | 560,550) | 485,481) | 442,988) | 7,720) | 7,509) | |
| Non-current portion of equipment promissory notes, net | —) | 1,129) | 14,614) | 31,053) | —) | —) | |
| Total debt | 3,163,320) | 2,820,470) | 1,104,277) | 1,327,410) | 931,283) | 874,207) | |
| Stockholders’ equity (deficit) | 784,661) | 1,170,277) | 447,026) | 18,651) | (22,962) | (7,336) | |
| Total capital | 3,947,981) | 3,990,747) | 1,551,303) | 1,346,061) | 908,321) | 866,871) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.80 | 0.71 | 0.71 | 0.99 | 1.03 | 1.01 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | 0.28 | 0.37 | 0.35 | 0.40 | 0.45 | — | |
| Home Depot Inc. | 0.97 | 1.04 | 0.92 | 1.11 | 1.07 | — | |
| Lowe’s Cos. Inc. | 1.72 | 1.24 | 0.94 | 0.91 | 0.82 | — | |
| TJX Cos. Inc. | 0.35 | 0.36 | 0.51 | 0.27 | 0.31 | — | |
| Debt to Capital, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.45 | 0.51 | 0.48 | 0.54 | 0.59 | — | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | 0.58 | 0.61 | 0.60 | 0.70 | 0.74 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 3,163,320 ÷ 3,947,981 = 0.80
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | RH debt to capital ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
RH, debt to capital (including operating lease liability) 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) | |||||||
| Convertible senior notes due 2024, net | —) | 3,600) | —) | —) | —) | —) | |
| Convertible senior notes due 2023, net | 1,696) | 9,389) | 2,354) | —) | —) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | 290,532) | —) | —) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | 343,789) | —) | |
| Current portion of term loans | 25,000) | 20,000) | —) | —) | —) | —) | |
| Current finance lease liabilities | 17,007) | 15,511) | 14,671) | 9,188) | 1,074) | 471) | |
| Current portion of equipment promissory notes | 1,160) | 13,625) | 22,747) | 22,009) | 892) | 6,033) | |
| Asset based credit facility | —) | —) | —) | —) | 57,500) | 199,970) | |
| Term loan B, net | 1,936,529) | 1,953,203) | —) | —) | —) | —) | |
| Term loan B-2, net | 469,245) | —) | —) | —) | —) | —) | |
| Term loan, net | —) | —) | —) | —) | —) | 79,499) | |
| Real estate loans | 17,909) | —) | —) | —) | —) | —) | |
| Convertible senior notes due 2024, net | 41,724) | 184,461) | 281,454) | 264,982) | —) | —) | |
| Convertible senior notes due 2023, net | —) | 59,002) | 282,956) | 266,658) | 249,151) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | —) | 271,157) | 252,994) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | —) | 327,731) | |
| Non-current finance lease liabilities | 653,050) | 560,550) | 485,481) | 442,988) | 7,720) | 7,509) | |
| Non-current portion of equipment promissory notes, net | —) | 1,129) | 14,614) | 31,053) | —) | —) | |
| Total debt | 3,163,320) | 2,820,470) | 1,104,277) | 1,327,410) | 931,283) | 874,207) | |
| Current operating lease liabilities | 80,384) | 73,834) | 71,524) | 58,924) | —) | —) | |
| Non-current operating lease liabilities | 505,809) | 540,513) | 448,169) | 409,930) | —) | —) | |
| Total debt (including operating lease liability) | 3,749,513) | 3,434,817) | 1,623,970) | 1,796,264) | 931,283) | 874,207) | |
| Stockholders’ equity (deficit) | 784,661) | 1,170,277) | 447,026) | 18,651) | (22,962) | (7,336) | |
| Total capital (including operating lease liability) | 4,534,174) | 4,605,094) | 2,070,996) | 1,814,915) | 908,321) | 866,871) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.83 | 0.75 | 0.78 | 0.99 | 1.03 | 1.01 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.43 | 0.51 | 0.49 | 0.52 | 0.56 | — | |
| Home Depot Inc. | 0.97 | 1.04 | 0.93 | 1.09 | 1.07 | — | |
| Lowe’s Cos. Inc. | 1.60 | 1.20 | 0.95 | 0.92 | 0.82 | — | |
| TJX Cos. Inc. | 0.67 | 0.68 | 0.73 | 0.66 | 0.31 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.57 | 0.63 | 0.59 | 0.64 | 0.65 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.63 | 0.66 | 0.65 | 0.74 | 0.76 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 3,749,513 ÷ 4,534,174 = 0.83
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | RH debt to capital ratio (including operating lease liability) improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Debt to Assets
RH, debt to assets 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) | |||||||
| Convertible senior notes due 2024, net | —) | 3,600) | —) | —) | —) | —) | |
| Convertible senior notes due 2023, net | 1,696) | 9,389) | 2,354) | —) | —) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | 290,532) | —) | —) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | 343,789) | —) | |
| Current portion of term loans | 25,000) | 20,000) | —) | —) | —) | —) | |
| Current finance lease liabilities | 17,007) | 15,511) | 14,671) | 9,188) | 1,074) | 471) | |
| Current portion of equipment promissory notes | 1,160) | 13,625) | 22,747) | 22,009) | 892) | 6,033) | |
| Asset based credit facility | —) | —) | —) | —) | 57,500) | 199,970) | |
| Term loan B, net | 1,936,529) | 1,953,203) | —) | —) | —) | —) | |
| Term loan B-2, net | 469,245) | —) | —) | —) | —) | —) | |
| Term loan, net | —) | —) | —) | —) | —) | 79,499) | |
| Real estate loans | 17,909) | —) | —) | —) | —) | —) | |
| Convertible senior notes due 2024, net | 41,724) | 184,461) | 281,454) | 264,982) | —) | —) | |
| Convertible senior notes due 2023, net | —) | 59,002) | 282,956) | 266,658) | 249,151) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | —) | 271,157) | 252,994) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | —) | 327,731) | |
| Non-current finance lease liabilities | 653,050) | 560,550) | 485,481) | 442,988) | 7,720) | 7,509) | |
| Non-current portion of equipment promissory notes, net | —) | 1,129) | 14,614) | 31,053) | —) | —) | |
| Total debt | 3,163,320) | 2,820,470) | 1,104,277) | 1,327,410) | 931,283) | 874,207) | |
| Total assets | 5,309,289) | 5,540,470) | 2,898,313) | 2,445,694) | 1,806,034) | 1,732,866) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.60 | 0.51 | 0.38 | 0.54 | 0.52 | 0.50 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | 0.15 | 0.19 | 0.18 | 0.19 | 0.23 | — | |
| Home Depot Inc. | 0.57 | 0.56 | 0.53 | 0.61 | 0.66 | — | |
| Lowe’s Cos. Inc. | 0.78 | 0.55 | 0.47 | 0.49 | 0.47 | — | |
| TJX Cos. Inc. | 0.12 | 0.12 | 0.20 | 0.09 | 0.16 | — | |
| Debt to Assets, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.24 | 0.25 | 0.24 | 0.26 | 0.31 | — | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | 0.34 | 0.35 | 0.36 | 0.41 | 0.45 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 3,163,320 ÷ 5,309,289 = 0.60
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | RH debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
RH, debt to assets (including operating lease liability) 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) | |||||||
| Convertible senior notes due 2024, net | —) | 3,600) | —) | —) | —) | —) | |
| Convertible senior notes due 2023, net | 1,696) | 9,389) | 2,354) | —) | —) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | 290,532) | —) | —) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | 343,789) | —) | |
| Current portion of term loans | 25,000) | 20,000) | —) | —) | —) | —) | |
| Current finance lease liabilities | 17,007) | 15,511) | 14,671) | 9,188) | 1,074) | 471) | |
| Current portion of equipment promissory notes | 1,160) | 13,625) | 22,747) | 22,009) | 892) | 6,033) | |
| Asset based credit facility | —) | —) | —) | —) | 57,500) | 199,970) | |
| Term loan B, net | 1,936,529) | 1,953,203) | —) | —) | —) | —) | |
| Term loan B-2, net | 469,245) | —) | —) | —) | —) | —) | |
| Term loan, net | —) | —) | —) | —) | —) | 79,499) | |
| Real estate loans | 17,909) | —) | —) | —) | —) | —) | |
| Convertible senior notes due 2024, net | 41,724) | 184,461) | 281,454) | 264,982) | —) | —) | |
| Convertible senior notes due 2023, net | —) | 59,002) | 282,956) | 266,658) | 249,151) | —) | |
| Convertible senior notes due 2020, net | —) | —) | —) | —) | 271,157) | 252,994) | |
| Convertible senior notes due 2019, net | —) | —) | —) | —) | —) | 327,731) | |
| Non-current finance lease liabilities | 653,050) | 560,550) | 485,481) | 442,988) | 7,720) | 7,509) | |
| Non-current portion of equipment promissory notes, net | —) | 1,129) | 14,614) | 31,053) | —) | —) | |
| Total debt | 3,163,320) | 2,820,470) | 1,104,277) | 1,327,410) | 931,283) | 874,207) | |
| Current operating lease liabilities | 80,384) | 73,834) | 71,524) | 58,924) | —) | —) | |
| Non-current operating lease liabilities | 505,809) | 540,513) | 448,169) | 409,930) | —) | —) | |
| Total debt (including operating lease liability) | 3,749,513) | 3,434,817) | 1,623,970) | 1,796,264) | 931,283) | 874,207) | |
| Total assets | 5,309,289) | 5,540,470) | 2,898,313) | 2,445,694) | 1,806,034) | 1,732,866) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.71 | 0.62 | 0.56 | 0.73 | 0.52 | 0.50 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.29 | 0.33 | 0.31 | 0.31 | 0.34 | — | |
| Home Depot Inc. | 0.66 | 0.64 | 0.62 | 0.73 | 0.66 | — | |
| Lowe’s Cos. Inc. | 0.87 | 0.66 | 0.56 | 0.60 | 0.47 | — | |
| TJX Cos. Inc. | 0.45 | 0.44 | 0.50 | 0.47 | 0.16 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.38 | 0.40 | 0.38 | 0.40 | 0.39 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.43 | 0.44 | 0.45 | 0.50 | 0.50 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 3,749,513 ÷ 5,309,289 = 0.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | RH debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
RH, financial leverage 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) | |||||||
| Total assets | 5,309,289) | 5,540,470) | 2,898,313) | 2,445,694) | 1,806,034) | 1,732,866) | |
| Stockholders’ equity (deficit) | 784,661) | 1,170,277) | 447,026) | 18,651) | (22,962) | (7,336) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 6.77 | 4.73 | 6.48 | 131.13 | — | — | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | 2.61 | 3.17 | 3.04 | 3.44 | 3.63 | — | |
| Home Depot Inc. | 48.94 | — | 21.39 | — | — | — | |
| Lowe’s Cos. Inc. | — | — | 32.52 | 20.02 | 9.47 | — | |
| TJX Cos. Inc. | 4.45 | 4.74 | 5.28 | 4.06 | 2.84 | — | |
| Financial Leverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.46 | 4.18 | 3.82 | 4.44 | 4.62 | — | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | 4.00 | 4.38 | 4.26 | 5.72 | 6.22 | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity (deficit)
= 5,309,289 ÷ 784,661 = 6.77
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | RH financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Interest Coverage
RH, interest coverage 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) | |||||||
| Net income | 528,642) | 688,546) | 271,815) | 220,375) | 150,639) | 2,180) | |
| Add: Income tax expense | (91,358) | 133,558) | 104,598) | 48,807) | 30,514) | 27,971) | |
| Add: Interest expense | 151,730) | 66,883) | 70,648) | 88,509) | 75,908) | 63,084) | |
| Earnings before interest and tax (EBIT) | 589,014) | 888,987) | 447,061) | 357,691) | 257,061) | 93,235) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 3.88 | 13.29 | 6.33 | 4.04 | 3.39 | 1.48 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 12.80 | -1.51 | 22.09 | 15.69 | 9.73 | — | |
| Home Depot Inc. | 14.90 | 17.14 | 13.60 | 13.25 | 14.85 | — | |
| Lowe’s Cos. Inc. | 8.79 | 13.49 | 9.88 | 8.83 | 6.21 | — | |
| TJX Cos. Inc. | 56.19 | 37.80 | 1.46 | 75.57 | 65.36 | — | |
| Interest Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 13.19 | 7.64 | 15.91 | 14.50 | 11.71 | — | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | 12.27 | 9.45 | 13.29 | 7.81 | 9.65 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 589,014 ÷ 151,730 = 3.88
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | RH interest coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Fixed Charge Coverage
RH, fixed charge coverage 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) | |||||||
| Net income | 528,642) | 688,546) | 271,815) | 220,375) | 150,639) | 2,180) | |
| Add: Income tax expense | (91,358) | 133,558) | 104,598) | 48,807) | 30,514) | 27,971) | |
| Add: Interest expense | 151,730) | 66,883) | 70,648) | 88,509) | 75,908) | 63,084) | |
| Earnings before interest and tax (EBIT) | 589,014) | 888,987) | 447,061) | 357,691) | 257,061) | 93,235) | |
| Add: Operating lease cost | 100,646) | 99,985) | 84,852) | 86,448) | 91,674) | 99,215) | |
| Earnings before fixed charges and tax | 689,660) | 988,972) | 531,913) | 444,139) | 348,735) | 192,450) | |
| Interest expense | 151,730) | 66,883) | 70,648) | 88,509) | 75,908) | 63,084) | |
| Operating lease cost | 100,646) | 99,985) | 84,852) | 86,448) | 91,674) | 99,215) | |
| Fixed charges | 252,376) | 166,868) | 155,500) | 174,957) | 167,582) | 162,299) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 2.73 | 5.93 | 3.42 | 2.54 | 2.08 | 1.19 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 3.73 | 0.47 | 5.24 | 4.63 | 3.65 | — | |
| Home Depot Inc. | 9.07 | 9.94 | 8.97 | 8.26 | 7.80 | — | |
| Lowe’s Cos. Inc. | 5.77 | 8.02 | 6.05 | 5.04 | 3.68 | — | |
| TJX Cos. Inc. | 3.31 | 3.17 | 1.04 | 3.43 | 3.39 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.61 | 2.82 | 5.29 | 5.11 | 4.46 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | 4.98 | 3.70 | 5.63 | 3.72 | 4.20 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 689,660 ÷ 252,376 = 2.73
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | RH fixed charge coverage ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |