Ross Stores Inc (ROST)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 12.03% | 10.63% | 11.99% | -1.09% | 13.48% |
| Operating profit margin | -3.87% | -4.13% | -3.27% | -21.60% | -1.20% |
| Pretax margin | 12.03% | 10.63% | 11.99% | 0.87% | 13.48% |
| Net profit margin | 9.13% | 8.09% | 9.14% | 0.70% | 10.34% |
Ross Stores Inc has shown varying profitability over the past five years, as reflected in its key profitability ratios.
1. Gross Profit Margin:
The gross profit margin has fluctuated over the years, with a peak of 13.48% in 2020 and a low of -1.09% in 2021. In 2024, the gross profit margin improved to 12.03%, indicating the company's ability to control its cost of goods sold and generate profits from its core operations.
2. Operating Profit Margin:
Ross Stores Inc has struggled with its operating profit margin, consistently showing negative figures over the years. The company's operating profit margin improved slightly in 2024 to -3.87%, but it remains in the negative territory. This suggests that the company is facing challenges in controlling its operating expenses and inefficiencies in its operations.
3. Pretax Margin:
The pretax margin has shown improvement over the years, with fluctuations in line with the gross profit margin. In 2024, the pretax margin reached 12.03%, indicating that the company is effectively managing its pre-tax earnings relative to its total revenues.
4. Net Profit Margin:
The net profit margin has also varied over the years, with a peak of 10.34% in 2020 and a low of 0.70% in 2021. In 2024, the net profit margin improved to 9.13%, reflecting the company's ability to generate profits after accounting for all expenses, including taxes.
Overall, Ross Stores Inc has shown some improvement in its profitability margins in the most recent year, particularly in gross profit and net profit margins. However, the company continues to face challenges in improving its operating profit margin, which suggests the need for further cost management and operational efficiency measures.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -5.57% | -5.75% | -4.52% | -20.73% | -2.06% |
| Return on assets (ROA) | 13.11% | 11.27% | 12.63% | 0.67% | 17.77% |
| Return on total capital | 35.95% | 30.66% | 35.83% | 3.39% | 59.20% |
| Return on equity (ROE) | 38.48% | 35.26% | 42.43% | 2.59% | 49.44% |
Ross Stores Inc's profitability ratios demonstrate varying trends over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has been negative in recent years, indicating that the company's core operations are not generating sufficient profits relative to its assets. This may suggest inefficiencies in the company's operations or cost structure.
2. Return on Assets (ROA): The ROA has shown a mixed trend, with fluctuations in profitability levels. In 2024, the ROA improved significantly to 13.11%, indicating that the company generated a higher return on its total assets compared to previous years. This suggests that Ross Stores Inc is becoming more efficient in utilizing its assets to generate profits.
3. Return on Total Capital: The Return on Total Capital has also shown an upward trend over the years, indicating that the company is generating higher returns on its total invested capital. The significant improvement in 2024 to 35.95% reflects the company's ability to generate substantial profits relative to the capital invested.
4. Return on Equity (ROE): The ROE has been volatile but generally increasing over the years. In 2024, the ROE reached 38.48%, indicating that Ross Stores Inc generated a higher return for its shareholders' equity compared to the previous year. This suggests that the company is effectively using shareholder funds to generate profits.
Overall, while the operating profitability of Ross Stores Inc has shown challenges, the company's overall profitability metrics, such as ROA, Return on Total Capital, and ROE, have demonstrated positive trends in recent years, indicating improvements in the company's financial performance and efficiency in generating returns.