RHCAUTIOUS

RH Debt-to-Equity Ratio Analysis

42.50x

Higher than 100% of Consumer Cyclical sector peers

Updated 275h ago·SEC filings & market data

Key Takeaway

Debt-to-equity ratio measures how much debt a company uses to fund its assets relative to shareholders' equity; at 42.50x, RH carries $42.50 of debt for every $1 of equity, an extremely high leverage level.

Sector Performance

100th percentile

42.50x

Sector Median

0.47x

Sector Avg

1.84x

Prior Period

65.50x(May 2026)

↑ Improving

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Deep Analysis

This sits far above the sector median of 0.47x, placing RH in the 100th percentile among Consumer Cyclical peers, meaning it is more leveraged than essentially all comparable companies. The trend data is unavailable: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so no direction can be confirmed from these figures. A very high ratio with no observable trend still signals elevated financial risk, as any earnings shortfall or interest rate rise could strain debt servicing, while the lack of trend data removes any signal of improvement or deterioration. This metric directly supports the overall CAUTIOUS verdict, since extreme leverage amplifies downside exposure and leaves limited cushion for investors.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about RH?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does RH's Debt-to-Equity Ratio compare to its sector?

RH's Debt-to-Equity Ratio of 42.50x compares to a Consumer Cyclical sector median of 0.47x, placing it in the 100th percentile.

Who are RH's closest peers by Debt-to-Equity Ratio?

The closest Consumer Cyclical peers by Debt-to-Equity Ratio include: SKX (0.47x), ROL (0.49x), BOOT (0.59x), CAVA (0.62x), BWA (0.69x).

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Learn More About Debt-to-Equity Ratio

How to Spot a Debt Problem Before It Hits the Stock Price

Learn how to spot a debt problem in stocks using D/E, interest coverage, and net debt/EBITDA ratios. Real examples from META and MSFT, plus danger thresholds you need to know.

Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.