Ross Stores Inc (ROST)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Operating income	US$ in thousands	-795,896	-771,779	-615,929	-2,636,940	-192,416
Total assets	US$ in thousands	14,300,100	13,416,500	13,640,300	12,717,900	9,348,370
Operating ROA		-5.57%	-5.75%	-4.52%	-20.73%	-2.06%

February 3, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-795,896K ÷ $14,300,100K
= -5.57%

Ross Stores Inc's operating return on assets (ROA) has fluctuated over the past five years, ranging from -20.73% in fiscal year 2021 to -2.06% in fiscal year 2020. The negative values indicate that the company's operating income generated from its assets has not been sufficient to cover the asset base.

The improvement in fiscal year 2020 suggests a better utilization of assets to generate operating income compared to the significant decline in fiscal year 2021. The negative trend seen in the most recent fiscal year 2024 at -5.57% raises concerns about the company's ability to effectively generate operational profits from its asset base.

Overall, the downward trend in operating ROA indicates a need for Ross Stores Inc to evaluate and enhance its operational efficiency and asset utilization to improve profitability and ensure sustainable growth in the future.