Ross Stores Inc (ROST)

Quick ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash	US$ in thousands	4,872,450	4,551,880	4,922,360	4,819,290	1,351,200
Short-term investments	US$ in thousands	—	—	—	7	—
Receivables	US$ in thousands	130,766	145,694	119,247	115,067	102,236
Total current liabilities	US$ in thousands	4,185,800	3,636,250	4,214,930	3,967,030	2,701,930
Quick ratio		1.20	1.29	1.20	1.24	0.54

February 3, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,872,450K + $—K + $130,766K) ÷ $4,185,800K
= 1.20

The quick ratio of Ross Stores Inc has shown some fluctuations over the past five years. The quick ratio helps assess a company's ability to pay off its short-term liabilities with its most liquid assets.

In fiscal year 2020, the quick ratio was notably low at 0.54, indicating a potential liquidity concern as the company's liquid assets were insufficient to cover its short-term obligations comfortably.

However, in subsequent years, there was an improvement in the quick ratio. It reached 1.24 in fiscal year 2021, showing a better position compared to the previous year. This improvement continued into fiscal year 2022 with a quick ratio of 1.20, suggesting that the company had increased its ability to meet short-term obligations with its quick assets.

The quick ratio then increased to 1.29 in fiscal year 2023, indicating a further enhancement in liquidity position. However, in the most recent fiscal year 2024, the quick ratio decreased slightly to 1.20, which is still considered at a healthy level.

Overall, the trend in Ross Stores Inc's quick ratio over the past five years indicates that the company has made improvements in its liquidity position, providing a positive signal regarding its ability to meet short-term obligations using its liquid assets.