Ross Stores Inc (ROST)
Liquidity ratios
| Jan 31, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 31, 2023 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.62 | 1.57 | 1.56 | 1.54 | 1.77 | 1.70 | 1.70 | 1.83 | 1.86 | 1.90 | 1.95 | 1.92 | 1.88 | 1.77 | 1.75 | 1.77 | 1.72 | 1.69 | 1.65 | 1.70 |
| Quick ratio | 1.01 | 0.90 | 0.96 | 0.96 | 1.17 | 1.02 | 1.06 | 1.20 | 1.21 | 1.29 | 1.18 | 1.12 | 1.07 | 1.20 | 1.21 | 1.28 | 1.24 | 1.24 | 1.12 | 1.20 |
| Cash ratio | 1.01 | 0.90 | 0.96 | 0.96 | 1.17 | 1.02 | 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 |
Ross Stores Inc's liquidity ratios indicate the company's ability to meet its short-term obligations.
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a generally increasing trend over the last few years, reaching 1.62 as of January 31, 2025. This suggests that Ross Stores Inc's current assets are sufficient to cover its current liabilities.
- The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has fluctuated over the period. Despite some variability, the quick ratio has generally remained above 1, indicating that Ross Stores Inc can cover its short-term liabilities without having to rely heavily on inventory.
- The cash ratio, which indicates the company's ability to cover its current liabilities with its cash and cash equivalents, has also shown fluctuations but has generally been above 1. This indicates that Ross Stores Inc has a strong cash position to meet its immediate payment obligations.
Overall, Ross Stores Inc's liquidity ratios show a generally stable and healthy liquidity position, with the company being able to meet its short-term obligations effectively.
See also:
Additional liquidity measure
| Jan 31, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 31, 2023 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 58.47 | 68.24 | 59.72 | 56.85 | 47.94 | 58.33 | 10.16 | 6.48 | 7.20 | 3.15 | 16.32 | 17.85 | 64.25 | -0.34 | -7.41 | 48.53 | 52.36 | -22.57 | 60.08 | 40.97 |
The cash conversion cycle of Ross Stores Inc has shown fluctuations over the observation period. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates efficient management of working capital and quicker turnover of inventory and receivables.
From August 1, 2020, to October 31, 2020, the cash conversion cycle increased from 40.97 days to 60.08 days, indicating a longer time to convert inventory into cash. However, from January 30, 2021, to October 30, 2021, the company managed to significantly reduce the cycle from -22.57 days to -7.41 days, entering a negative cycle where the company started receiving cash before paying its suppliers or producing inventory.
Subsequently, the cash conversion cycle increased to 64.25 days by April 30, 2022, before declining to 10.16 days by October 28, 2023. This improvement suggests efficient management of inventory and receivables during this period.
However, the cycle increased again to 68.24 days by November 2, 2024, indicating a longer time to convert investments into cash, possibly reflecting challenges in inventory management or slower collection of receivables.
Overall, fluctuations in Ross Stores Inc's cash conversion cycle suggest changing efficiency levels in managing working capital, inventory turnover, and collection of receivables. Monitoring and analyzing these trends can provide insights into the company's financial health and operational efficiency.