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.