Ross Stores Inc (ROST)

Fixed asset turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	20,541,100	18,693,000	18,841,900	12,208,200	16,057,200
Property, plant and equipment	US$ in thousands	3,531,900	3,181,530	2,898,530	2,710,500	2,653,440
Fixed asset turnover		5.82	5.88	6.50	4.50	6.05

February 3, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $20,541,100K ÷ $3,531,900K
= 5.82

The fixed asset turnover ratio for Ross Stores Inc has shown fluctuations over the past five years. The ratio indicates the company's effectiveness in generating sales revenue from its investment in fixed assets.

From January 2020 to January 2022, the ratio increased steadily from 6.05 to 6.50, indicating that Ross Stores Inc was able to generate more sales relative to its investment in fixed assets during this period. This suggests efficient utilization of fixed assets to drive revenue.

However, in the following year, ending January 2023, the ratio decreased slightly to 5.88, indicating a slight decrease in the efficiency of utilizing fixed assets to generate sales revenue.
Further, by the end of January 2024, the ratio dropped further to 5.82, indicating a continued decline in the efficiency of generating sales revenue from fixed assets compared to the previous year.

Overall, the trend in fixed asset turnover for Ross Stores Inc reflects fluctuations in the company's ability to efficiently utilize its investments in fixed assets to generate sales revenue. Further analysis and investigation into the reasons behind these fluctuations would provide more insight into the company's operational performance and efficiency.