Ross Stores Inc (ROST)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	8.24	6.67	7.47	7.53	8.26	6.65	6.08	6.20	7.33	7.13	8.82	8.19	8.18	7.56	10.82	7.36	7.58	6.29	7.28	7.25
Receivables turnover	157.08	114.61	110.05	110.67	128.30	109.56	110.13	113.73	158.01	113.81	108.31	90.40	108.18	103.01	78.43	283.95	157.06	126.17	118.46	125.05
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
Working capital turnover	6.39	6.38	5.84	5.80	5.72	5.60	5.52	5.67	5.78	5.36	5.17	4.85	4.57	4.91	5.82	7.17	21.97	21.05	18.47	17.50

Ross Stores Inc's inventory turnover ratio has shown slight fluctuations over the past few quarters, ranging from 6.08 to 10.82, with an average of approximately 7.59. This indicates that the company is efficiently managing its inventory, with a higher turnover ratio implying faster sales of inventory.

The receivables turnover ratio has also varied notably, from 78.43 to 283.95, suggesting differences in the collection efficiency of receivables. The average turnover ratio is approximately 129.96, indicating that Ross Stores Inc is efficient in collecting outstanding receivables, with a higher ratio reflecting a faster collection cycle.

In terms of payables turnover, the ratio has ranged from 5.08 to 18.32, with an average of around 8.83. This signifies the speed at which the company is paying its suppliers, with a higher ratio suggesting a shorter payment cycle.

Lastly, the working capital turnover ratio has shown fluctuations ranging from 4.57 to 21.97, with an average of approximately 10.76. This ratio reflects how efficiently Ross Stores Inc is utilizing its working capital to generate sales, with a higher ratio indicating that the company is effectively using its resources to drive revenue.

Overall, these activity ratios provide insight into Ross Stores Inc's operational efficiency in managing its inventory, receivables, payables, and working capital to support its business activities and financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	44.28	54.68	48.84	48.48	44.21	54.91	60.05	58.87	49.79	51.22	41.40	44.56	44.63	48.30	33.72	49.57	48.14	58.07	50.12	50.32
Days of sales outstanding (DSO)	days	2.32	3.18	3.32	3.30	2.84	3.33	3.31	3.21	2.31	3.21	3.37	4.04	3.37	3.54	4.65	1.29	2.32	2.89	3.08	2.92
Number of days of payables	days	39.51	47.71	45.68	44.58	43.91	42.44	46.10	47.90	52.21	60.89	61.20	67.56	66.75	71.88	30.45	19.92	34.06	39.63	37.12	35.96

The activity ratios of Ross Stores Inc over the specified periods indicate varying efficiency levels in managing its inventory, sales, and payables.

Days of Inventory on Hand (DOH):
- DOH has fluctuated over the periods analyzed, with a range of 33.72 to 60.05 days.
- Generally, the company held inventory for around 40-50 days, but there were outliers such as the high of 60.05 days in July 2022.
- A lower DOH indicates faster inventory turnover and better inventory management.

Days of Sales Outstanding (DSO):
- DSO also showed variability, ranging from 1.29 to 4.65 days.
- The company collected receivables in approximately 2-4 days, indicating efficient credit management.
- The lower DSO in August 2020 and May 2020 could be attributed to effective collection efforts.

Number of Days of Payables:
- The days of payables ranged from 19.92 to 71.88 days, reflecting changes in payment practices.
- Ross Stores Inc managed payables for around 40-50 days, but there were instances of longer payment periods seen in certain periods.
- A longer payment period may indicate better cash flow management but could also lead to strained supplier relationships.

Overall, the analysis of the activity ratios suggests that Ross Stores Inc has been relatively efficient in managing its inventory turnover and collection of receivables. However, the variability in these ratios over the periods highlights the importance of continuous monitoring and management of working capital components.

Long-term

	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
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
Total asset turnover	1.44	1.38	1.38	1.39	1.39	1.41	1.40	1.41	1.38	1.30	1.26	1.13	0.98	1.01	1.13	1.31	1.72	1.67	1.69	1.68

Ross Stores Inc has maintained a relatively stable fixed asset turnover ratio over the past two years, ranging between 5.57 to 6.50. This indicates that the company generates approximately $5.57 to $6.50 in sales for every dollar invested in fixed assets. The fluctuations in this ratio may stem from changes in the efficiency of utilizing fixed assets to generate revenue.

In terms of total asset turnover, Ross Stores Inc has shown variations in performance over the same period, with ratios ranging from 0.98 to 1.72. This implies that the company generates sales ranging from $0.98 to $1.72 for each dollar of total assets owned. The decreasing trend in total asset turnover ratio suggests that the company may be becoming less efficient in utilizing its total assets to generate sales.

Overall, while the fixed asset turnover ratio has been more stable for Ross Stores Inc, the fluctuations in the total asset turnover ratio indicate a need for the company to focus on optimizing the utilization of its total assets to drive revenue growth and improve overall efficiency in its operations.