RH (LTS:0KTF) Inventory Turnover : 0.57 (As of Jan. 2024)

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What is RH Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. RH's Cost of Goods Sold for the three months ended in Jan. 2024 was $417 Mil. RH's Average Total Inventories for the quarter that ended in Jan. 2024 was $737 Mil. RH's Inventory Turnover for the quarter that ended in Jan. 2024 was 0.57.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. RH's Days Inventory for the three months ended in Jan. 2024 was 161.05.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. RH's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 1.00.

RH Inventory Turnover Historical Data

The historical data trend for RH's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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RH Inventory Turnover Chart

RH Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Inventory Turnover

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3.20

3.10

2.98

2.32

2.11

RH Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Inventory Turnover	Get a 7-Day Free Trial															0.50	0.50	0.56	0.56	0.57

RH Inventory Turnover Calculation

RH's Inventory Turnover for the fiscal year that ended in Jan. 2024 is calculated as

	Inventory Turnover (A: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2024 )	/ (	(Total Inventories (A: Jan. 2023 )	+	Total Inventories (A: Jan. 2024 ))	/	count )
=	1640.107	/ (	(801.841	+	754.126)	/	2 )
=	1640.107	/	777.9835
=	2.11

RH's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	417.309	/ (	(718.959	+	754.126)	/	2 )
=	417.309	/	736.5425
=	0.57

RH (LTS:0KTF) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

RH's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	736.5425	/	417.309	*	365 / 4
	=	161.05

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

RH's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	736.5425	/	738.26
	=	1.00

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

RH Inventory Turnover Related Terms

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RH (LTS:0KTF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RH (LTS:0KTF) » Definitions » Inventory Turnover

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Address

15 Koch Road, Suite K, Corte Madera, CA, USA, 94925

Website

https://www.restorationhardware.com

RH is a luxury retailer operating in the $143 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and is growing the presence of its hospitality business (with 15 restaurant locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Teen, RH Modern, and Waterworks, for example). RH is fully integrated across store, Web, and catalog channels, and is positioned to broaden its total addressable market over the next decade with its World of RH digital platform (highlighting offerings outside of home furnishings), along with future offerings in color, bespoke furniture, architeture, media, and more.

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