RHCAUTIOUS

Current Ratio

1.13x

Higher than 27% of Consumer Cyclical sector peers

Updated 31h ago

Sector Performance

27th percentile

RH

1.13x

Sector Median

1.44x

Sector Avg

2.69x

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Deep Analysis

The current ratio of 1.13x means that RH has $1.13 in current assets for every $1.00 in current liabilities, indicating a modest ability to cover short-term obligations.

This level is below the Consumer Cyclical sector median of 1.44x, placing RH in the 27th percentile among its peers. The year-over-year change is not available, but the ratio declined 5.0% quarter over quarter from the prior quarter’s 1.19x. A ratio below the sector median combined with a recent decrease suggests that liquidity has tightened slightly, which could add risk if cash demands rise unexpectedly. This metric supports the overall CAUTIOUS verdict on RH, as the combination of below-average coverage and a declining trend reinforces a more defensive stance.

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 27th percentile.

Who are RH's closest peers by Current Ratio?

The closest Consumer Cyclical peers by Current Ratio include: URBN (1.48x), BROS (1.33x), SHAK (1.69x), MELI (1.16x), CHPT (1.15x).

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.

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RH

1.13x

Sector Median

1.44x

Sector Avg

2.69x

How RH's Current Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.