Ross Stores Inc (ROST)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	4,872,450	4,551,880	4,922,360	4,819,290	1,351,200
Short-term investments	US$ in thousands	—	—	—	7	—
Total current liabilities	US$ in thousands	4,185,800	3,636,250	4,214,930	3,967,030	2,701,930
Cash ratio		1.16	1.25	1.17	1.21	0.50

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,872,450K + $—K) ÷ $4,185,800K
= 1.16

The cash ratio of Ross Stores Inc has shown a relatively stable trend over the past five years. The ratio has ranged from 0.50 to 1.25, indicating that the company has consistently maintained a sufficient level of cash and cash equivalents to cover its current liabilities without relying heavily on other current assets.

The highest cash ratio of 1.25 was observed on Jan 28, 2023, suggesting a strong liquidity position during that period. This indicates that Ross Stores Inc had $1.25 in cash and cash equivalents for every $1 of current liabilities, providing a comfortable buffer to meet its short-term obligations.

On the other hand, the lowest cash ratio of 0.50 was recorded on Feb 1, 2020. This lower ratio may signal a temporary reduction in liquidity or a strategic decision to deploy cash for other investments or operations during that particular period.

Overall, a cash ratio above 1.00 indicates that Ross Stores Inc has a healthy liquidity position, with the ability to cover its short-term obligations using readily available cash resources. Maintaining a consistent cash ratio over time demonstrates the company's prudent financial management and ability to weather potential short-term financial challenges.