Ross Stores Inc (ROST)

Payables 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
Cost of revenue (ttm)	US$ in thousands	18,069,280	17,446,370	17,189,040	16,878,380	16,705,490	16,579,450	16,513,800	16,575,860	16,583,370	15,901,540	15,439,060	13,910,020	12,341,870	12,320,320	12,102,080	12,938,280	13,892,900	13,632,490	13,370,360	13,156,100
Payables	US$ in thousands	1,955,850	2,280,280	2,151,000	2,061,530	2,009,920	1,927,760	2,085,680	2,175,350	2,372,300	2,652,880	2,588,550	2,574,780	2,256,930	2,426,390	1,009,700	706,267	1,296,480	1,480,200	1,359,830	1,296,180
Payables turnover		9.24	7.65	7.99	8.19	8.31	8.60	7.92	7.62	6.99	5.99	5.96	5.40	5.47	5.08	11.99	18.32	10.72	9.21	9.83	10.15

February 3, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $18,069,280K ÷ $1,955,850K
= 9.24

Ross Stores Inc's payables turnover ratio has fluctuated over the months, ranging from a low of 5.08 to a high of 18.32. The payables turnover ratio measures how efficiently the company pays its suppliers. A higher ratio indicates that Ross Stores is paying its payables more quickly, which can be positive as it demonstrates good liquidity and strong supplier relationships.

The significant increase in payables turnover from May 2020 to August 2020, reaching 11.99 and then 18.32, suggests that Ross Stores was paying its suppliers at an accelerated rate during this period. This might indicate a proactive approach in managing payables or taking advantage of early payment discounts.

However, the ratio decreased in the following months, stabilizing around 8-9, which could signal a return to a more normal payment schedule. The consistent ratios around this range reflect a relatively steady approach to paying suppliers during these months.

Overall, Ross Stores Inc's payables turnover ratio shows varying trends over the observed period, reflecting changes in the company's supplier payment practices and liquidity management strategies. It would be essential to monitor this ratio in the future to assess the effectiveness of the company's payables management.