How Are Arhaus’ Financial Ratios Impacting Its Market Position?

3 min read | January 13, 2025 01:22 AM PST | By Team Kalkine Media

Highlights:

  • Arhaus operates in the home furnishings sector with a market capitalization of $1.53 billion.
  • The company maintains a debt-to-equity ratio of 0.17 and a current ratio of 1.23.
  • The stock's 12-month price range is from $8.30 to $19.81.

Arhaus (NASDAQ:ARHS) is a notable entity in the home furnishings sector, recognized for its wide array of home decor products, including furniture and accessories aimed at enhancing residential spaces. The company plays a significant role in the home goods industry, which includes companies engaged in the manufacturing and retailing of furniture and home decor items.

Financial Ratios

Arhaus holds a quick ratio of 0.52, reflecting its ability to meet short-term obligations using its most liquid assets. This ratio is an indicator of the company's capacity to address immediate liabilities with available resources. The current ratio stands at 1.23, suggesting that Arhaus possesses sufficient assets to cover its current liabilities in the near term.

The company's debt-to-equity ratio of 0.17 points to a conservative approach in managing finances, with a lower reliance on debt for long-term funding. This ratio is an indicator of how well the company can manage its long-term obligations relative to equity financing.

Market Capitalization and Earnings

Arhaus has a market capitalization of $1.53 billion, positioning it as a mid-sized company within its sector. The company’s price-to-earnings (P/E) ratio is 19.43, indicating its valuation relative to its earnings. The price-to-earnings-growth (P/E/G) ratio of 14.78 reflects the company’s earnings relative to its expected growth, offering a perspective on its valuation with respect to growth trends.

Stock Performance

Arhaus has exhibited notable stock price movement, with a 50-day moving average of $9.84 and a 200-day moving average of $11.66. These averages help track the stock’s price trends in both the short term and the long term. The stock's 12-month price range spans from $8.30 to $19.81, showing significant fluctuations over the past year.

This variation indicates the stock has experienced periods of both price increases and declines, influenced by a variety of factors such as market conditions and company performance.

Risk Profile

Arhaus has a beta of 2.58, which suggests the stock is more volatile compared to the broader market. A higher beta indicates that the stock’s price movements tend to be more pronounced, whether in the upward or downward direction, compared to general market trends. This highlights the relative risk level associated with the company’s stock performance in comparison to the overall market volatility.


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