Ross Stores Inc (ROST)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	15,260,500	15,292,240	15,222,230	15,805,040	16,691,630	16,355,100	17,446,370	17,189,040	16,878,380	16,036,000	15,909,960	15,844,310	15,188,580	15,190,530	14,508,700	13,168,360	11,837,610	10,529,200	9,905,770	9,960,780
Inventory	US$ in thousands	2,444,510	2,859,110	2,490,560	2,461,700	2,192,220	2,613,810	2,613,810	2,300,060	2,241,740	2,023,500	2,494,000	2,716,880	2,673,550	2,262,270	2,231,240	1,751,030	1,697,990	1,508,980	1,630,390	1,117,980
Inventory turnover		6.24	5.35	6.11	6.42	7.61	6.26	6.67	7.47	7.53	7.92	6.38	5.83	5.68	6.71	6.50	7.52	6.97	6.98	6.08	8.91

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $15,260,500K ÷ $2,444,510K
= 6.24

Ross Stores Inc's inventory turnover has shown fluctuations over the data period from August 1, 2020, to January 31, 2025. The inventory turnover ratio indicates how efficiently the company manages its inventory in generating sales. A high turnover ratio suggests that inventory is selling quickly, which is generally a positive sign.

From August 1, 2020, to May 1, 2021, the inventory turnover remained relatively stable within the range of 6.08 to 8.91, indicating efficient inventory management. However, from April 30, 2022, to November 2, 2024, there was a consistent decrease in the turnover ratio, reaching a low of 5.35 on November 2, 2024. This downward trend suggests that the company may be experiencing challenges in selling its inventory as quickly as before.

The inventory turnover then showed a slight improvement, reaching 6.24 on January 31, 2025. The company should monitor this ratio closely and assess its inventory management practices to ensure optimal efficiency and profitability. Further analysis of factors affecting inventory turnover, such as sales trends, purchasing strategies, and market conditions, may provide insights into improving this important financial metric.