Ross Stores Inc (ROST)

Working capital 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
Revenue (ttm)	US$ in thousands	20,541,060	19,703,320	19,303,440	18,903,660	18,692,980	18,458,850	18,446,360	18,660,290	18,841,920	18,069,620	17,239,590	15,109,180	12,448,160	12,634,370	12,762,120	14,090,910	16,057,180	15,753,150	15,452,190	15,206,860
Total current assets	US$ in thousands	7,398,140	7,491,940	7,273,750	7,039,630	6,904,720	6,761,190	6,985,070	7,048,000	7,473,180	7,844,910	7,672,850	7,431,530	6,692,490	6,516,570	5,347,360	4,587,920	3,432,830	3,606,660	3,515,920	3,462,700
Total current liabilities	US$ in thousands	4,185,800	4,405,690	3,969,640	3,781,170	3,636,250	3,464,230	3,644,980	3,756,060	4,214,930	4,476,310	4,336,190	4,318,400	3,967,030	3,941,630	3,153,070	2,623,620	2,701,930	2,858,240	2,679,410	2,593,510
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

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $20,541,060K ÷ ($7,398,140K – $4,185,800K)
= 6.39

Ross Stores Inc's working capital turnover has shown a consistent trend over the past several quarters. The ratio has remained above 5, indicating that the company effectively utilizes its working capital to generate sales.

There was a slight increase in the working capital turnover ratio from 5.17 in July 2021 to 6.39 in February 2024. This suggests that Ross Stores has been able to efficiently manage its working capital to support its operational activities and sales growth.

It is important to note the significant spike in the working capital turnover ratio in February 2020 and May 2020, where it reached exceptionally high levels of 21.97 and 7.17, respectively. This could be due to abnormal fluctuations in either working capital or sales during those periods.

Overall, Ross Stores Inc's consistent working capital turnover above 5 showcases the company's ability to efficiently utilize its working capital to support its core business operations and drive revenue generation.