Ross Stores Inc (ROST)

Payables turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	18,069,300	16,705,500	16,583,400	12,341,900	13,892,900
Payables	US$ in thousands	1,955,850	2,009,920	2,372,300	2,256,930	1,296,480
Payables turnover		9.24	8.31	6.99	5.47	10.72

February 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $18,069,300K ÷ $1,955,850K
= 9.24

To analyze Ross Stores Inc payables turnover based on the data provided, we observe a fluctuating trend over the past five years. Payables turnover, a financial ratio that measures how efficiently a company manages its accounts payable by paying suppliers, has varied as follows:

- As of February 3, 2024, the payables turnover stood at 9.24, indicating that Ross Stores Inc converted its accounts payable into cash approximately 9.24 times during the fiscal year.
- In comparison to the previous year, the payables turnover was 8.31 as of January 28, 2023, showing an improvement in the efficiency of managing payables during this period.
- The payables turnover for January 29, 2022, was 6.99, suggesting a slight decrease in efficiency compared to the previous year.
- On January 30, 2021, the payables turnover decreased further to 5.47, indicating a decline in the speed at which the company settled its accounts payable.
- However, in the fiscal year ending on February 1, 2020, the payables turnover notably increased to 10.72, reflecting a significant improvement in the efficiency of managing payables compared to the preceding year.

Overall, the payables turnover for Ross Stores Inc has exhibited variability over the past five years, with a general increasing trend up to 2020 followed by fluctuations in subsequent years. It is essential for the company to closely monitor and manage this ratio to ensure optimal cash flow and supplier relationships.