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RH (RH) Asset Turnover

: 0.18 (As of Jan. 2024)
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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. RH's Revenue for the three months ended in Jan. 2024 was $738 Mil. RH's Total Assets for the quarter that ended in Jan. 2024 was $4,192 Mil. Therefore, RH's Asset Turnover for the quarter that ended in Jan. 2024 was 0.18.

Asset Turnover is linked to ROE % through Du Pont Formula. RH's annualized ROE % for the quarter that ended in Jan. 2024 was -14.44%. It is also linked to ROA % through Du Pont Formula. RH's annualized ROA % for the quarter that ended in Jan. 2024 was 1.09%.


RH Asset Turnover Historical Data

The historical data trend for RH's Asset 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 Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Asset Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.09 1.07 0.89 0.66 0.64

RH Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Asset 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 0.14 0.14 0.17 0.18 0.18

Competitive Comparison

For the Specialty Retail subindustry, RH's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover Distribution

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

* The bar in red indicates where RH's Asset Turnover falls into.



RH Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (A: Jan. 2024 )/( (Total Assets (A: Jan. 2023 )+Total Assets (A: Jan. 2024 ))/ count )
=3029.126/( (5309.289+4143.897)/ 2 )
=3029.126/4726.593
=0.64

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

Asset Turnover
=Revenue/Average Total Assets
=Revenue (Q: Jan. 2024 )/( (Total Assets (Q: Oct. 2023 )+Total Assets (Q: Jan. 2024 ))/ count )
=738.26/( (4240.619+4143.897)/ 2 )
=738.26/4192.258
=0.18

* 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.

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.


RH  (NYSE:RH) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

RH's annulized ROE % for the quarter that ended in Jan. 2024 is

ROE %**(Q: Jan. 2024 )
=Net Income/Total Stockholders Equity
=45.524/-315.304
=(Net Income / Revenue)*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(45.524 / 2953.04)*(2953.04 / 4192.258)*(4192.258/ -315.304)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.54 %*0.7044*-13.2959
=ROA %*Equity Multiplier
=1.09 %*-13.2959
=-14.44 %

Note: The Net Income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) revenue data.

* 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 ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

RH's annulized ROA % for the quarter that ended in Jan. 2024 is

ROA %(Q: Jan. 2024 )
=Net Income/Total Assets
=45.524/4192.258
=(Net Income / Revenue)*(Revenue / Total Assets)
=(45.524 / 2953.04)*(2953.04 / 4192.258)
=Net Margin %*Asset Turnover
=1.54 %*0.7044
=1.09 %

Note: The Net Income data used here is four times the quarterly (Jan. 2024) net income data. The Revenue data used here is four times the quarterly (Jan. 2024) revenue data.

* 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

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.


RH Asset Turnover Related Terms

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


RH (RH) Business Description

Traded in Other Exchanges
Address
15 Koch Road, Suite K, Corte Madera, CA, USA, 94925
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.
Executives
Edward T Lee officer: SEE REMARKS C/O RH, 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
Keith Belling director C/O RESTORATION HARDWARE HOLDINGS, INC., 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
Jack M Preston officer: CHIEF FINANCIAL OFFICER 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
Eri Chaya officer: See Remarks 1981 14TH AVE, SAN FRANCISCO CA 94116
Carlos Alberini director C/O LUCKY BRAND, LLC, 540 SOUTH SANTA FE AVE., LOS ANGELES CA 90013
Mark S Demilio director 6950 COLUMBIA GATEWAY DR STE 400, COLUMBIA MD 21046
Hilary K Krane director ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Stefan Duban officer: SEE REMARKS 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
Gary G Friedman director, 10 percent owner, officer: Chairman & CEO C/O RESTORATION HARDWARE INC, 15 KOCH RD. SUITE J, CORTE MADERA CA 94925
Christina Hargarten officer: See Remarks 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
David Stanchak officer: See Remarks C/O RH, 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
Demonty Price officer: Please See Remarks C/O RESTORATION HARDWARE HOLDINGS, INC., 15 KOCH ROAD, SUITE K, CORTE MADERA CA 94925
Kathleen C. Mitic director C/O EBAY INC., 2065 HAMILTON AVENUE, SAN JOSE CA 95125
Glenda M Citragno officer: Chief Accounting Officer 15 KOCH ROAD, CORTE MADERA CA 94925
Ali Rowghani director 101 SECOND STREET, SUITE 1400, SAN FRANCISCO CA 94105