Ross Stores Inc (ROST)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,872,450 | 4,499,500 | 4,583,610 | 4,416,480 | 4,551,880 | 3,906,490 | 3,903,670 | 4,015,570 | 4,922,360 | 5,259,600 | 5,569,070 | 5,367,010 | 4,819,290 | 4,416,120 | 3,793,040 | 2,669,540 | 1,351,200 | 1,142,710 | 1,382,020 | 1,366,590 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | 7 | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 1.16 | 1.02 | 1.15 | 1.17 | 1.25 | 1.13 | 1.07 | 1.07 | 1.17 | 1.17 | 1.28 | 1.24 | 1.21 | 1.12 | 1.20 | 1.02 | 0.50 | 0.40 | 0.52 | 0.53 |
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 some fluctuations over the periods analyzed. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.
Looking at the trend, the cash ratio increased from 1.02 in October 2019 to a peak of 1.28 in July 2021 before gradually decreasing again. The ratio has generally remained above 1, indicating that Ross Stores Inc has had sufficient cash on hand to cover its current liabilities throughout these periods.
The cash ratio dipped to 0.50 in February 2020, possibly due to operational or financial challenges at that time. However, the company managed to improve the ratio significantly in subsequent periods.
Overall, Ross Stores Inc has maintained a healthy cash position relative to its short-term obligations, with the cash ratio mostly above 1, suggesting a sound liquidity position. It is important for the company to continue monitoring and managing its cash flows effectively to sustain its ability to meet its short-term financial commitments.
Peer comparison
Feb 3, 2024