Ross Stores Inc (ROST)

Working capital turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Revenue	US$ in thousands	21,129,200	20,541,100	20,376,900	18,695,800	18,693,000
Total current assets	US$ in thousands	7,538,700	7,398,140	7,398,140	6,904,720	6,904,720
Total current liabilities	US$ in thousands	4,661,820	4,185,800	4,185,800	3,636,250	3,636,250
Working capital turnover		7.34	6.39	6.34	5.72	5.72

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,129,200K ÷ ($7,538,700K – $4,661,820K)
= 7.34

Ross Stores Inc's working capital turnover has shown a positive trend over the specified period, starting at 5.72 in January 28, 2023, and steadily increasing to 7.34 by January 31, 2025. This indicates that the company is efficiently utilizing its working capital to generate revenue. The improvement in the working capital turnover ratio suggests that Ross Stores Inc has been able to effectively manage its current assets and liabilities to support its operations. A higher working capital turnover ratio is generally seen as a positive indicator of a company's liquidity and operational efficiency. The consistent rise in this ratio reflects Ross Stores Inc's ability to convert its working capital into sales at an increasing rate, showcasing strong financial health and effective management of its resources.