Ross Stores Inc (ROST)

Fixed asset turnover

		Feb 3, 2024	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	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Revenue (ttm)	US$ in thousands	20,541,060	19,703,320	19,303,440	18,903,660	18,692,980	18,458,850	18,446,360	18,660,290	18,841,920	18,069,620	17,239,590	15,109,180	12,448,160	12,634,370	12,762,120	14,090,910	16,057,180	15,753,150	15,452,190	15,206,860
Property, plant and equipment	US$ in thousands	3,531,900	3,397,520	3,310,600	3,224,730	3,181,530	3,008,740	2,929,770	2,887,930	2,898,530	2,784,290	2,746,210	2,713,870	2,710,500	2,706,880	2,706,100	2,696,720	2,653,440	2,565,880	2,505,040	2,436,370
Fixed asset turnover		5.82	5.80	5.83	5.86	5.88	6.14	6.30	6.46	6.50	6.49	6.28	5.57	4.59	4.67	4.72	5.23	6.05	6.14	6.17	6.24

February 3, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $20,541,060K ÷ $3,531,900K
= 5.82

Ross Stores Inc's fixed asset turnover has shown a generally stable trend over the past few quarters, ranging from 4.59 to 6.50. Fixed asset turnover measures how efficiently a company is generating revenue from its investments in fixed assets. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate sales.

In this case, we observe that Ross Stores Inc's fixed asset turnover has been consistently above 5.00 in recent quarters, reflecting a strong efficiency in utilizing its fixed assets to generate sales. The highest fixed asset turnover of 6.50 was seen in the quarter ending January 29, 2022, indicating a peak in efficiency during that period.

Overall, the trend of Ross Stores Inc's fixed asset turnover suggests that the company has been effectively managing its fixed assets to generate sales revenue. It is essential for the company to maintain this efficiency to drive sustainable growth and profitability in the long term.