Stock Analysis on Net

RH (NYSE:RH)

This company has been moved to the archive! The financial data has not been updated since May 26, 2023.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

RH, short-term (operating) activity ratios

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Turnover Ratios
Inventory turnover 2.22 2.59 2.80 3.54 2.83 3.02
Receivables turnover 60.08 64.90 47.90 54.05 62.29 77.68
Payables turnover 10.71 7.86 6.77 8.59 8.22 8.15
Working capital turnover 2.21 1.85 19.43
Average No. Days
Average inventory processing period 165 141 130 103 129 121
Add: Average receivable collection period 6 6 8 7 6 5
Operating cycle 171 147 138 110 135 126
Less: Average payables payment period 34 46 54 42 44 45
Cash conversion cycle 137 101 84 68 91 81

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. RH inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. RH receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. RH payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. RH number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. RH operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. RH number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. RH cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Inventory Turnover

RH, inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data (US$ in thousands)
Cost of goods sold 1,778,492 1,903,409 1,523,095 1,552,426 1,504,806 1,591,107
Merchandise inventories 801,841 734,289 544,227 438,696 531,947 527,026
Short-term Activity Ratio
Inventory turnover1 2.22 2.59 2.80 3.54 2.83 3.02
Benchmarks
Inventory Turnover, Competitors2
Amazon.com Inc. 9.15 8.40 8.34 9.80 8.08
Home Depot Inc. 4.20 4.55 5.25 5.00 5.10
Lowe’s Cos. Inc. 3.50 3.65 3.71 3.73 3.85
TJX Cos. Inc. 6.21 5.82 5.66 6.13 6.08
Inventory Turnover, Sector
Consumer Discretionary Distribution & Retail 6.18 6.10 6.36 6.83 6.07
Inventory Turnover, Industry
Consumer Discretionary 6.99 6.67 7.04 7.48 7.72

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
Inventory turnover = Cost of goods sold ÷ Merchandise inventories
= 1,778,492 ÷ 801,841 = 2.22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. RH inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

RH, receivables turnover calculation, comparison to benchmarks

Microsoft Excel
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 revenues 3,590,477 3,758,820 2,848,626 2,647,437 2,505,653 2,440,174
Accounts receivable, net 59,763 57,914 59,474 48,979 40,224 31,412
Short-term Activity Ratio
Receivables turnover1 60.08 64.90 47.90 54.05 62.29 77.68
Benchmarks
Receivables Turnover, Competitors2
Amazon.com Inc. 16.86 19.32 23.26 26.09 22.26
Home Depot Inc. 47.45 44.12 44.15 52.34 55.89
Lowe’s Cos. Inc.
TJX Cos. Inc. 88.70 93.79 69.69 108.00 112.54
Receivables Turnover, Sector
Consumer Discretionary Distribution & Retail 23.15 26.52 30.59 35.28 33.53
Receivables Turnover, Industry
Consumer Discretionary 17.84 17.95 21.21 21.81 21.46

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
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 3,590,477 ÷ 59,763 = 60.08

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. RH receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Payables Turnover

RH, payables turnover calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data (US$ in thousands)
Cost of goods sold 1,778,492 1,903,409 1,523,095 1,552,426 1,504,806 1,591,107
Accounts payable 166,082 242,035 224,906 180,714 183,039 195,313
Short-term Activity Ratio
Payables turnover1 10.71 7.86 6.77 8.59 8.22 8.15
Benchmarks
Payables Turnover, Competitors2
Amazon.com Inc. 3.59 3.63 3.46 3.22 3.51
Home Depot Inc. 9.14 7.45 7.52 9.33 9.16
Lowe’s Cos. Inc. 6.16 5.65 5.51 6.42 5.85
TJX Cos. Inc. 9.53 7.77 5.09 11.17 10.53
Payables Turnover, Sector
Consumer Discretionary Distribution & Retail 4.61 4.48 4.19 4.25 4.75
Payables Turnover, Industry
Consumer Discretionary 5.18 4.80 4.66 4.74 5.51

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
Payables turnover = Cost of goods sold ÷ Accounts payable
= 1,778,492 ÷ 166,082 = 10.71

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. RH payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023.

Working Capital Turnover

RH, working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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
Less: Current liabilities 885,973 1,063,758 921,632 982,912 918,172 519,335
Working capital 1,626,691 2,027,684 (120,148) (385,960) (235,479) 125,595
 
Net revenues 3,590,477 3,758,820 2,848,626 2,647,437 2,505,653 2,440,174
Short-term Activity Ratio
Working capital turnover1 2.21 1.85 19.43
Benchmarks
Working Capital Turnover, Competitors2
Amazon.com Inc. 77.32 24.33 60.82 32.92
Home Depot Inc. 16.81 417.56 24.87 76.81 59.68
Lowe’s Cos. Inc. 50.26 245.54 24.92 530.50
TJX Cos. Inc. 23.22 17.40 6.51 23.97 13.27
Working Capital Turnover, Sector
Consumer Discretionary Distribution & Retail 42.11 21.83 63.17 38.37
Working Capital Turnover, Industry
Consumer Discretionary 14.99 18.57 11.02 13.68 25.90

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
Working capital turnover = Net revenues ÷ Working capital
= 3,590,477 ÷ 1,626,691 = 2.21

2 Click competitor name to see calculations.


Average Inventory Processing Period

RH, average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data
Inventory turnover 2.22 2.59 2.80 3.54 2.83 3.02
Short-term Activity Ratio (no. days)
Average inventory processing period1 165 141 130 103 129 121
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Amazon.com Inc. 40 43 44 37 45
Home Depot Inc. 87 80 70 73 72
Lowe’s Cos. Inc. 104 100 98 98 95
TJX Cos. Inc. 59 63 65 60 60
Average Inventory Processing Period, Sector
Consumer Discretionary Distribution & Retail 59 60 57 53 60
Average Inventory Processing Period, Industry
Consumer Discretionary 52 55 52 49 47

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.22 = 165

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. RH number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

RH, average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data
Receivables turnover 60.08 64.90 47.90 54.05 62.29 77.68
Short-term Activity Ratio (no. days)
Average receivable collection period1 6 6 8 7 6 5
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Amazon.com Inc. 22 19 16 14 16
Home Depot Inc. 8 8 8 7 7
Lowe’s Cos. Inc.
TJX Cos. Inc. 4 4 5 3 3
Average Receivable Collection Period, Sector
Consumer Discretionary Distribution & Retail 16 14 12 10 11
Average Receivable Collection Period, Industry
Consumer Discretionary 20 20 17 17 17

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 60.08 = 6

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

RH, operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data
Average inventory processing period 165 141 130 103 129 121
Average receivable collection period 6 6 8 7 6 5
Short-term Activity Ratio
Operating cycle1 171 147 138 110 135 126
Benchmarks
Operating Cycle, Competitors2
Amazon.com Inc. 62 62 60 51 61
Home Depot Inc. 95 88 78 80 79
Lowe’s Cos. Inc.
TJX Cos. Inc. 63 67 70 63 63
Operating Cycle, Sector
Consumer Discretionary Distribution & Retail 75 74 69 63 71
Operating Cycle, Industry
Consumer Discretionary 72 75 69 66 64

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
Operating cycle = Average inventory processing period + Average receivable collection period
= 165 + 6 = 171

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. RH operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

RH, average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data
Payables turnover 10.71 7.86 6.77 8.59 8.22 8.15
Short-term Activity Ratio (no. days)
Average payables payment period1 34 46 54 42 44 45
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amazon.com Inc. 102 101 105 113 104
Home Depot Inc. 40 49 49 39 40
Lowe’s Cos. Inc. 59 65 66 57 62
TJX Cos. Inc. 38 47 72 33 35
Average Payables Payment Period, Sector
Consumer Discretionary Distribution & Retail 79 81 87 86 77
Average Payables Payment Period, Industry
Consumer Discretionary 70 76 78 77 66

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 10.71 = 34

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. RH number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.

Cash Conversion Cycle

RH, cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018
Selected Financial Data
Average inventory processing period 165 141 130 103 129 121
Average receivable collection period 6 6 8 7 6 5
Average payables payment period 34 46 54 42 44 45
Short-term Activity Ratio
Cash conversion cycle1 137 101 84 68 91 81
Benchmarks
Cash Conversion Cycle, Competitors2
Amazon.com Inc. -40 -39 -45 -62 -43
Home Depot Inc. 55 39 29 41 39
Lowe’s Cos. Inc.
TJX Cos. Inc. 25 20 -2 30 28
Cash Conversion Cycle, Sector
Consumer Discretionary Distribution & Retail -4 -7 -18 -23 -6
Cash Conversion Cycle, Industry
Consumer Discretionary 2 -1 -9 -11 -2

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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 165 + 634 = 137

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. RH cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023.