Ross Stores Inc (ROST)

Cash ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash and cash equivalents	US$ in thousands	4,730,740	4,872,450	4,872,450	4,551,880	4,551,880
Short-term investments	US$ in thousands	—	—	-14,489	—	—
Total current liabilities	US$ in thousands	4,661,820	4,185,800	4,185,800	3,636,250	3,636,250
Cash ratio		1.01	1.16	1.16	1.25	1.25

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,730,740K + $—K) ÷ $4,661,820K
= 1.01

The cash ratio measures a company's ability to cover its short-term liabilities solely with its cash and cash equivalents. Looking at the historical data for Ross Stores Inc's cash ratio, we observe a consistent trend with the ratio remaining above 1.00 over the past few years. This indicates that the company has maintained a strong liquidity position, with the ability to cover its short-term obligations comfortably using its available cash reserves.

However, there is a slight downward trend in the cash ratio from 1.25 in January 2023 to 1.01 in January 2025. This decline could suggest a potential decrease in the proportion of cash to current liabilities, which may warrant further investigation into the company's cash management practices or changes in its operating environment.

Overall, while Ross Stores Inc's cash ratio indicates a generally robust liquidity position, ongoing monitoring and analysis of this ratio would be beneficial to ensure the company's ability to meet its short-term financial obligations effectively.