Ross Stores Inc (ROST)

Days of sales outstanding (DSO)

		Jan 31, 2025	Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 31, 2023	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020
Receivables turnover		—	—	—	—	—	—	114.61	110.05	110.67	128.42	109.66	110.23	—	158.32	114.05	—	—	108.74	—	—
DSO	days	—	—	—	—	—	—	3.18	3.32	3.30	2.84	3.33	3.31	—	2.31	3.20	—	—	3.36	—	—

January 31, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ —
= —

Based on the provided data on days of sales outstanding (DSO) for Ross Stores Inc, the analysis reveals fluctuations in the efficiency of the company in collecting its accounts receivable over time.

Between January 30, 2021, and January 28, 2023, Ross Stores Inc demonstrated an improving trend in DSO, decreasing from 3.36 days to 2.84 days. This indicates that the company became more efficient in collecting its outstanding sales within a shorter time frame over this period.

However, from April 29, 2023, to October 29, 2023, the DSO slightly increased to 3.30 days and then to 3.32 days on July 29, 2023, respectively. This uptick might suggest a delay in collecting its accounts receivable compared to the earlier period.

Subsequently, there was a slight decrease in DSO to 3.18 days on October 28, 2023, before returning to "— days" by October 31, 2023. This fluctuation could imply variability in the company's collection practices or changes in sales and credit policies during this period.

Overall, the trend in DSO for Ross Stores Inc showcases periods of improvement in accounts receivable management followed by slight fluctuations, reflecting the company's efforts to optimize its cash conversion cycle and maintain efficient working capital management. It is crucial for the company to continue monitoring and managing its DSO to ensure timely collection of sales revenues and maintain healthy liquidity levels.