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RH (BSP:R2HH34) Inventory-to-Revenue : 1.00 (As of Jul. 2024)


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What is RH Inventory-to-Revenue?

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 Average Total Inventories for the quarter that ended in Jul. 2024 was R$4,600 Mil. RH's Revenue for the three months ended in Jul. 2024 was R$4,599 Mil. RH's Inventory-to-Revenue for the quarter that ended in Jul. 2024 was 1.00.

RH's Inventory-to-Revenue for the quarter that ended in Jul. 2024 declined from Apr. 2024 (1.05) to Apr. 2024 (1.00)

A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

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 Jul. 2024 was 166.46.

Inventory Turnover measures how fast the company turns over its inventory within a year. RH's Inventory Turnover for the quarter that ended in Jul. 2024 was 0.55.


RH Inventory-to-Revenue Historical Data

The historical data trend for RH's Inventory-to-Revenue 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 Inventory-to-Revenue Chart

RH Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.17 0.16 0.17 0.22 0.26

RH Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Inventory-to-Revenue Get a 7-Day Free Trial 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 0.96 0.95 1.01 1.05 1.00

Competitive Comparison of RH's Inventory-to-Revenue

For the Specialty Retail subindustry, RH's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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's Inventory-to-Revenue Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where RH's Inventory-to-Revenue falls into.



RH Inventory-to-Revenue Calculation

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 fiscal year that ended in Jan. 2024 is calculated as

Inventory-to-Revenue (A: Jan. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Jan. 2023 ) + Total Inventories (A: Jan. 2024 )) / count ) / Revenue (A: Jan. 2024 )
=( (4163.319 + 3708.942) / 2 ) / 14897.847
=3936.1305 / 14897.847
=0.26

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

Inventory-to-Revenue (Q: Jul. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Apr. 2024 ) + Total Inventories (Q: Jul. 2024 )) / count ) / Revenue (Q: Jul. 2024 )
=( (4115.332 + 5085.5) / 2 ) / 4599.441
=4600.416 / 4599.441
=1.00

* 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.


RH  (BSP:R2HH34) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

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 Jul. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Jul. 2024 )/Cost of Goods Sold (Q: Jul. 2024 )*Days in Period
=4600.416/2521.863*365 / 4
=166.46

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

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

Inventory Turnover=Cost of Goods Sold (Q: Jul. 2024 ) / Average Total Inventories (Q: Jul. 2024 )
=2521.863 / 4600.416
=0.55

* 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.


RH Inventory-to-Revenue Related Terms

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RH Business Description

Traded in Other Exchanges
Address
15 Koch Road, Suite K, Corte Madera, CA, USA, 94925
RH is a luxury furniture and lifestyle retailer operating in the $134 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories including furniture, lighting, textiles, bath, decor, and children and is growing the presence of its hospitality business with 18 restaurant locations. RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Modern and Waterworks, for example). RH is fully integrated across channels and is positioned to broaden its addressable market over the next decade by expanding abroad, with its World of RH digital platform (highlighting offerings outside of home furnishings), and with offerings in color, bespoke furniture, architecture, media, and more.

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