Ross Stores Inc (ROST)

Working capital turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Revenue	US$ in thousands	20,541,100	18,693,000	18,841,900	12,208,200	16,057,200
Total current assets	US$ in thousands	7,398,140	6,904,720	7,473,180	6,692,490	3,432,830
Total current liabilities	US$ in thousands	4,185,800	3,636,250	4,214,930	3,967,030	2,701,930
Working capital turnover		6.39	5.72	5.78	4.48	21.97

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $20,541,100K ÷ ($7,398,140K – $4,185,800K)
= 6.39

The working capital turnover ratio for Ross Stores Inc has shown some fluctuation over the past five years. In general, a higher working capital turnover ratio indicates more efficient management of working capital.

In 2024, the working capital turnover ratio was 6.39, which increased from 5.72 in 2023. This improvement suggests that the company was able to generate sales more efficiently using its working capital in the most recent year. However, the ratio in 2024 is slightly below the 2022 figure of 5.78.

The working capital turnover ratio stood at 4.48 in 2021, showing a decrease from the significantly higher ratio of 21.97 in 2020. The sharp decline in 2021 may indicate a less effective utilization of working capital to generate sales compared to the previous year.

Overall, the trend in Ross Stores Inc's working capital turnover suggests that the company has been able to effectively manage its working capital to support sales growth in most years, with some variation in performance across the five-year period.