Ross Stores Inc (ROST)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | 7.10 | 10.16 | 6.48 | 7.20 | 3.14 | 15.80 | 17.27 | 14.18 | -0.11 | -6.47 | -16.43 | -18.97 | -18.75 | -20.04 | 7.92 | 30.93 | 16.40 | 21.33 | 16.08 | 17.28 |
February 3, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 44.28 + 2.32 – 39.51
= 7.10
Ross Stores Inc's cash conversion cycle measures how quickly the company can convert its investments in inventory into cash flow. A shorter cash conversion cycle indicates that the company is efficiently managing its working capital.
Looking at the data provided, Ross Stores Inc has experienced fluctuations in its cash conversion cycle over the recent periods. The company's cash conversion cycle ranged from a low of -20.04 days to a high of 30.93 days.
On average, Ross Stores Inc's cash conversion cycle was positive, indicating that the company typically took more time to convert its inventory into cash receipts. However, there were certain periods where the company managed to have a negative cash conversion cycle, reflecting a highly efficient working capital management where it was able to collect cash from customers before paying its suppliers for inventory.
Analyzing the trend over time, it appears that Ross Stores Inc's cash conversion cycle has been volatile, with periods of both efficiency and inefficiency. It is essential for the company to focus on optimizing its inventory management, accounts receivable collection, and payables management to maintain a healthy and sustainable cash conversion cycle.
Peer comparison
Feb 3, 2024