Ross Stores Inc (ROST)

Current ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Total current assets	US$ in thousands	7,538,700	7,398,140	7,398,140	6,904,720	6,904,720
Total current liabilities	US$ in thousands	4,661,820	4,185,800	4,185,800	3,636,250	3,636,250
Current ratio		1.62	1.77	1.77	1.90	1.90

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $7,538,700K ÷ $4,661,820K
= 1.62

The current ratio of Ross Stores Inc has remained relatively stable over the past few years, standing at 1.90 as of January 28, 2023 and maintaining this level until January 31, 2023. However, there was a slight decrease to 1.77 as of January 31, 2024 and this ratio remained the same until February 3, 2024. Subsequently, the current ratio decreased further to 1.62 as of January 31, 2025.

Overall, the current ratio indicates the company's ability to meet its short-term financial obligations with its current assets. A higher current ratio is generally preferred as it suggests a stronger liquidity position. Although the gradual decrease in the current ratio may raise some concerns, the ratio still remains above 1, indicating that Ross Stores Inc has sufficient current assets to cover its current liabilities. Further analysis would be needed to understand the underlying factors contributing to the changes in the current ratio over the years.