Ross Stores Inc (ROST)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | 114.61 | 110.05 | 110.67 | 128.42 | 109.66 | 110.23 | — | 158.32 | 114.05 | — | — | 108.74 | — | — |
| Payables turnover | — | — | — | — | — | — | 7.65 | 7.99 | 8.19 | 7.98 | 8.25 | 7.60 | — | 6.40 | 5.47 | — | — | 4.67 | — | — |
| Working capital turnover | 7.34 | 7.63 | 7.75 | 7.92 | 6.50 | 6.28 | 6.38 | 5.84 | 5.80 | 5.72 | 5.60 | 5.53 | 5.68 | 5.79 | 5.38 | 5.19 | 4.88 | 4.59 | 4.93 | 5.83 |
Based on the provided data for Ross Stores Inc, let's analyze the activity ratios:
1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory during a specific period. Ross Stores Inc's inventory turnover has fluctuated over time, with a general trend of decrease from around 8.91 in August 2020 to 6.24 in January 2025. A higher turnover ratio indicates better inventory management.
2. Receivables Turnover: The receivables turnover ratio indicates how efficiently a company collects its accounts receivable during a specific period. Ross Stores Inc had varying data points for this ratio, ranging from 108.74 in January 2021 to 128.42 in January 2023. A higher turnover ratio implies quicker collection of receivables, indicating effective credit management.
3. Payables Turnover: The payables turnover ratio shows how many times a company pays off its accounts payable in a given period. Ross Stores Inc's payables turnover increased from 4.67 in January 2021 to 8.19 in April 2023 before stabilizing around that level. A higher turnover ratio suggests efficient management of trade credit and better relationships with suppliers.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue. Ross Stores Inc's working capital turnover increased from 4.59 in January 2021 to 7.75 in August 2024, indicating a more efficient use of working capital to support sales growth.
In conclusion, Ross Stores Inc has shown mixed performance in its activity ratios over the reported periods. The company's inventory turnover has generally decreased, while its receivables turnover, payables turnover, and working capital turnover have shown various trends of improvement, indicating better efficiency in managing its assets and working capital to drive sales and profitability.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.47 | 68.24 | 59.72 | 56.85 | 47.94 | 58.33 | 54.68 | 48.84 | 48.48 | 46.06 | 57.22 | 62.59 | 64.25 | 54.36 | 56.13 | 48.53 | 52.36 | 52.31 | 60.08 | 40.97 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | 3.18 | 3.32 | 3.30 | 2.84 | 3.33 | 3.31 | — | 2.31 | 3.20 | — | — | 3.36 | — | — |
| Number of days of payables | days | — | — | — | — | — | — | 47.71 | 45.68 | 44.58 | 45.75 | 44.23 | 48.05 | — | 57.00 | 66.74 | — | — | 78.24 | — | — |
Ross Stores Inc's activity ratios provide insight into how efficiently the company manages its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The trend in the DOH indicates the number of days it takes for Ross Stores to sell its inventory.
- From August 1, 2020, to November 2, 2024, the DOH fluctuated between 40.97 days and 68.24 days.
- The highest DOH was recorded on November 2, 2024, indicating a longer time for inventory turnover.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects payments from its customers.
- The DSO varied from 2.31 days to 3.36 days over the period from January 30, 2021, to April 29, 2023.
- Low DSO values indicate Ross Stores efficiently collects payments from customers.
3. Number of Days of Payables:
- This ratio reflects how long the company takes to pay its suppliers.
- Ross Stores' payables days ranged from 44.23 days to 78.24 days from January 30, 2021, to January 28, 2023.
- The decreasing trend in payables days suggests the company is managing its payables more efficiently over time.
Overall, Ross Stores Inc should aim to strike a balance between managing its inventory levels, collecting payments promptly, and managing payables effectively to optimize its working capital and improve overall operational efficiency.
See also:
Ross Stores Inc Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 5.80 | 5.83 | 5.86 | 5.88 | 6.14 | 6.30 | 3.14 | 6.51 | 6.50 | 3.03 | — | 4.62 | — | — |
| Total asset turnover | 1.42 | 1.42 | 1.44 | 1.43 | 1.46 | 1.36 | 1.38 | 1.38 | 1.39 | 1.39 | 1.41 | 1.40 | 1.41 | 1.38 | 1.30 | 1.27 | 1.13 | 0.98 | 1.01 | 1.13 |
Ross Stores Inc's fixed asset turnover has shown fluctuation over the past few years, ranging from a low of 3.03 to a high of 6.51. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. The higher the ratio, the better the company is at generating sales from its fixed assets.
In contrast, Ross Stores Inc's total asset turnover has been relatively more stable, with values ranging between 1.01 and 1.46. This ratio indicates the company's ability to generate revenue from all its assets, including both fixed and current assets. A higher total asset turnover ratio suggests that the company is effectively using its assets to drive sales.
Overall, while Ross Stores Inc has shown some variability in its fixed asset turnover, its total asset turnover has remained relatively consistent. This demonstrates a stable and efficient use of assets to drive revenue generation over the analyzed period.
See also:
Ross Stores Inc Long-term (Investment) Activity Ratios (Quarterly Data)