Debt-to-Equity Ratio

A company's debt-to-equity ratio compares its total liabilities to shareholders' equity; RH's current ratio of 42.50x means it has $42.50 of debt for every $1 of equity, indicating extremely high leverage.

This level places RH in the 100th percentile among its Consumer Cyclical peers, far above the sector median of 0.74x, meaning its debt load is drastically higher than almost all comparable companies. The year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend direction can be derived from the available data. The combination of an extreme debt level with no observable trend signals a high-risk profile, as the company’s ability to service its obligations is highly sensitive to earnings and interest rates, but the lack of change may indicate the ratio has been stable for the period observed. This elevated metric contradicts the overall NEUTRAL verdict, because such a high debt-to-equity ratio typically warrants a cautious or bearish view due to heightened financial risk.

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