GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » RH (STU:RS1) » Definitions » Inventory Turnover

RH (STU:RS1) Inventory Turnover : 0.46 (As of Jan. 2025)


View and export this data going back to 2015. Start your Free Trial

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. 2025 was €434 Mil. RH's Average Total Inventories for the quarter that ended in Jan. 2025 was €942 Mil. RH's Inventory Turnover for the quarter that ended in Jan. 2025 was 0.46.

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. 2025 was 197.83.

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. 2025 was 1.20.


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.

* Premium members only.

RH Inventory Turnover Chart

RH Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.97 3.07 2.37 2.10 2.03

RH Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
Inventory Turnover 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 0.56 0.53 0.53 0.47 0.46

RH Inventory Turnover Calculation

RH's Inventory Turnover for the fiscal year that ended in Jan. 2025 is calculated as

Inventory Turnover (A: Jan. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Jan. 2025 ) / ((Total Inventories (A: Jan. 2024 ) + Total Inventories (A: Jan. 2025 )) / count )
=1705.783 / ((692.288 + 984.925) / 2 )
=1705.783 / 838.6065
=2.03

RH's Inventory Turnover for the quarter that ended in Jan. 2025 is calculated as

Inventory Turnover (Q: Jan. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jan. 2025 ) / ((Total Inventories (Q: Oct. 2024 ) + Total Inventories (Q: Jan. 2025 )) / count )
=434.322 / ((898.312 + 984.925) / 2 )
=434.322 / 941.6185
=0.46

* 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  (STU:RS1) 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. 2025 is calculated as:

Days Inventory =Average Total Inventories (Q: Jan. 2025 )/Cost of Goods Sold (Q: Jan. 2025 )*Days in Period
=941.6185/434.322*365 / 4
=197.83

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. 2025 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jan. 2025 ) / Revenue (Q: Jan. 2025 )
=941.6185 / 784.784
=1.20

* 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.


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

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


RH Business Description

Traded in Other Exchanges
Address
15 Koch Road, Corte Madera, CA, USA, 94925
RH is a luxury furniture and lifestyle retailer operating in the $136 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 22 restaurant locations, including RH Guesthouse. 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 architecture, media, and more.

RH Headlines

No Headlines