RHCAUTIOUS

RH Current Ratio Analysis

1.13x

Higher than 26% of Consumer Cyclical sector peers

Updated 6h ago·SEC filings & market data

Key Takeaway

A current ratio of 1.13x means RH has $1.13 in current assets for every $1 of current liabilities due within a year, showing adequate but thin short-term liquidity.

Sector Performance

26th percentile

1.13x

Sector Median

1.44x

Sector Avg

3.21x

Prior Period

1.19x(May 2026)

↓ Declining

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Deep Analysis

A current ratio of 1.13x means RH has $1.13 in current assets for every $1 of current liabilities due within a year, showing adequate but thin short-term liquidity.

This sits below the Consumer Cyclical sector median of 1.44x, placing RH at the 26th percentile among peers, so roughly three-quarters of comparable companies hold a larger buffer. The trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and there are no historical values beyond the current figure for the last eight quarters. The combination of a below-median level and no observable trend means the risk assessment relies solely on this snapshot, which offers no evidence of improving or deteriorating liquidity. That adds a modest layer of caution, as a lower current ratio can make it harder to absorb unexpected cash needs. This metric directly supports the overall CAUTIOUS verdict, aligning with the view that RH carries more liquidity risk than its sector peers.

Frequently Asked Questions

What does the Current Ratio tell investors about RH?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does RH's Current Ratio compare to its sector?

RH's Current Ratio of 1.13x compares to a Consumer Cyclical sector median of 1.44x, placing it in the 26th percentile.

Who are RH's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), ROST (1.54x), AEO (1.55x), SE (1.58x), PVH (1.68x).

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Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.