Ross Stores Inc (ROST)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.77 | 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 | 1.75 | 1.27 | 1.26 | 1.31 | 1.34 |
| Quick ratio | 1.20 | 1.06 | 1.20 | 1.21 | 1.29 | 1.18 | 1.12 | 1.11 | 1.20 | 1.21 | 1.32 | 1.28 | 1.24 | 1.15 | 1.25 | 1.04 | 0.54 | 0.44 | 0.56 | 0.57 |
| 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 |
Ross Stores Inc has maintained a relatively strong current ratio over the analyzed period, ranging from 1.70 to 1.95, with an average of approximately 1.80. This indicates that the company has a comfortable level of current assets to cover its current liabilities.
In terms of the quick ratio, Ross Stores Inc has shown some fluctuations, ranging from 1.04 to 1.32. Although the quick ratio is slightly lower than the current ratio, it still remains above 1 for most of the period, signaling the company's ability to meet its short-term obligations without relying heavily on inventory.
The cash ratio measures Ross Stores Inc's ability to cover its current liabilities with its most liquid assets. The company has maintained a strong cash ratio, ranging from 1.02 to 1.28, providing further evidence of its ability to cover its short-term obligations using its cash reserves.
Overall, Ross Stores Inc's liquidity ratios suggest that the company is well-positioned to meet its short-term financial obligations and indicates a sound liquidity position.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 7.10 | 10.16 | 6.48 | 7.20 | 3.14 | 15.80 | 17.27 | 14.18 | -0.11 | -6.47 | -16.43 | -18.97 | -18.75 | -20.04 | 7.92 | 30.93 | 16.40 | 21.33 | 16.08 | 17.28 |
Ross Stores Inc's cash conversion cycle has varied significantly over the past few reporting periods. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From the data provided, we observe that Ross Stores Inc's cash conversion cycle ranged from -20.04 days to 17.27 days during the period under review. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers, resulting in a favorable position from a liquidity standpoint.
The company experienced its shortest cash conversion cycle of -20.04 days most recently, indicating efficient management of its working capital and quick turnover of inventory. This implies that Ross Stores Inc is able to generate cash quickly from its sales operations and manage its inventory effectively.
On the other hand, the company's longest cash conversion cycle was 30.93 days, which suggests a potential delay in converting inventory purchases into sales and subsequently into cash inflows. This could indicate inventory management challenges or slower collection of receivables, which may require closer attention to optimize working capital efficiency.
Overall, Ross Stores Inc's cash conversion cycle shows fluctuations, indicating varying levels of efficiency in managing its working capital. Further analysis and comparison with industry benchmarks could provide insights into the company's operational effectiveness and potential areas for improvement.