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RH Interest Coverage

: 9.32 (As of Apr. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. RH's Operating Income for the three months ended in Apr. 2022 was $205 Mil. RH's Interest Expense for the three months ended in Apr. 2022 was $-22 Mil. RH's interest coverage for the quarter that ended in Apr. 2022 was 9.32. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for RH's Interest Coverage or its related term are showing as below:

RH' s Interest Coverage Range Over the Past 10 Years
Min: 1.19   Med: 5.2   Max: 14.46
Current: 12.89


RH's Interest Coverage is ranked better than
53.94% of 799 companies
in the Retail - Cyclical industry
Industry Median: 10.86 vs RH: 12.89

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


RH Interest Coverage Historical Data

The historical data trend for RH's Interest Coverage 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.

* Premium members only.

RH Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.26 3.86 4.16 6.95 14.46

RH Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.76 18.90 20.80 8.73 9.32

Competitive Comparison

For the Specialty Retail subindustry, RH's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

RH Interest Coverage Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, RH's Interest Coverage distribution charts can be found below:

* The bar in red indicates where RH's Interest Coverage falls into.



RH Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

RH's Interest Coverage for the fiscal year that ended in Jan. 2022 is calculated as

Here, for the fiscal year that ended in Jan. 2022, RH's Interest Expense was $-64 Mil. Its Operating Income was $927 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,299 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2022 )/Interest Expense (A: Jan. 2022 )
=-1*927.181/-64.13
=14.46

RH's Interest Coverage for the quarter that ended in Apr. 2022 is calculated as

Here, for the three months ended in Apr. 2022, RH's Interest Expense was $-22 Mil. Its Operating Income was $205 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,177 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*205.288/-22.036
=9.32

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


RH  (NYSE:RH) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


RH Interest Coverage Related Terms

Thank you for viewing the detailed overview of RH's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


RH Business Description

RH logo
Address
15 Koch Road, Suite K, Corte Madera, CA, USA, 94925
RH is a luxury retailer operating in the $112 billion furniture and home furnishing industry. The company offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and more and is growing the presence of its hospitality business (with 12 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). The company is fully integrated across store, Web, and catalog channels, and is positioned to broaden its total addressable market over the next decade with the launch of its World of RH digital platform in 2022, along with future offerings in contemporary, antique, bespoke furniture, couture upholstery, and more.
Executives
Preston Jack M officer: CHIEF FINANCIAL OFFICER 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Lee Edward T officer: SEE REMARKS C/O RH, 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Hargarten Christina officer: See Remarks 15 KOCH ROAD SUITE K CORTE MADERA CA 94925
Citragno Glenda M officer: Chief Accounting Officer 15 KOCH ROAD CORTE MADERA CA 94925
Blignaut Ryno officer: See Remarks C/O XOOM CORPORATION 100 BUSH STREET, SUITE 300 SAN FRANCISCO CA 94104
Stanchak David officer: See Remarks C/O RH, 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Stangl Sandra officer: See Remarks 3250 VAN NESS AVENUE SAN FRANCISCO CA 94109
Krane Hilary K director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Belling Keith director C/O RESTORATION HARDWARE HOLDINGS, INC. 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Mitic Kathleen C. director C/O EBAY INC. 2065 HAMILTON AVENUE SAN JOSE CA 95125
Rowghani Ali director 101 SECOND STREET SUITE 1400 SAN FRANCISCO CA 94105
Schlesinger Leonard A director THREE LIMITED PARKWAY COLUMBUS OH 43230
Price Demonty officer: Please See Remarks C/O RESTORATION HARDWARE HOLDINGS, INC. 15 KOCH ROAD, SUITE K CORTE MADERA CA 94925
Chaya Eri officer: See Remarks 1981 14TH AVE SAN FRANCISCO CA 94116
Boone Karen officer: See Remarks 15 KOCH ROAD SUITE J CORTE MADERA CA 94925

RH Headlines

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