Flagship explainer

What drives RH’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity−242%Tax burden75%net income ÷ pretax incomeInterest burden43%pretax ÷ operating incomeOperating margin11%operating income ÷ revenueAsset turnover0.73×revenue ÷ average assetsEquity multiplier-91.18×average assets ÷ average equityAs of 2026-01-31 · 2 SEC filing sourcesBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$125MFY2026
Income before tax$167MFY2026
Operating income$387MFY2026
$3.4BFY2026
Ending assets$4.8BFY2026
Beginning assets$4.6BFY2025
$60.6MFY2026
−$164MFY2025
Source: · event Jan 31, 2026 · retrieved Oct 17, 2026 · annual-row source set
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