RH (BSP:R2HH34) ROCE % : 11.91% (As of Oct. 2024)

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What is RH ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. RH's annualized ROCE % for the quarter that ended in Oct. 2024 was 11.91%.

RH ROCE % Historical Data

The historical data trend for RH's ROCE % 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 ROCE % Chart

RH Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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25.92

28.60

28.00

12.86

10.19

RH Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															6.31	8.48	6.84	12.26	11.91

RH ROCE % Calculation

RH's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	1989.884	/	( ( (27566.89 - 4600.149)	+	(20380.514 - 4292.939) )	/ 2 )
	=	1989.884	/	( (22966.741	+	16087.575)	/ 2 )
	=	1989.884	/	19527.158
	=	10.19 %

RH's ROCE % of for the quarter that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	2307.24	/	( ( (24261.864 - 5602.309)	+	(25123.749 - 5044.011) )	/ 2 )
	=	2307.24	/	( ( 18659.555	+	20079.738 )	/ 2 )
	=	2307.24	/	19369.6465
	=	11.91 %

(1) Note: The EBIT data used here is four times the quarterly (Oct. 2024) EBIT data.

RH (BSP:R2HH34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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RH Business Description

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Traded in Other Exchanges

RH:USA RH:Mexico 0KTF:UK RS1:Germany

Address

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

Website

https://www.restorationhardware.com

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 19 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 bespoke furniture, architecture, media, and more.

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