Ross Stores Inc (ROST)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-795,896	-836,988	-862,437	-810,712	-771,779	-906,391	-885,631	-784,492	-615,929	-641,153	-1,160,788	-1,563,861	-2,396,984	-2,100,474	-1,481,233	-1,061,119	-192,416	-210,134	-205,935	-199,622
Total assets	US$ in thousands	14,300,100	14,270,600	13,987,300	13,618,900	13,416,500	13,100,100	13,179,900	13,233,700	13,640,300	13,915,700	13,641,400	13,395,900	12,717,900	12,570,700	11,322,200	10,728,000	9,348,370	9,415,840	9,151,950	9,049,120
Operating ROA		-5.57%	-5.87%	-6.17%	-5.95%	-5.75%	-6.92%	-6.72%	-5.93%	-4.52%	-4.61%	-8.51%	-11.67%	-18.85%	-16.71%	-13.08%	-9.89%	-2.06%	-2.23%	-2.25%	-2.21%

February 3, 2024 calculation

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

Operating return on assets (ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its assets used in its core operations. Ross Stores Inc's operating ROA has fluctuated significantly over the past 20 quarters, ranging from -18.85% to -2.06%.

The negative values of operating ROA indicate that Ross Stores Inc has not been able to efficiently utilize its assets to generate operating profits. The trend shows that the company's operating ROA has been generally declining, with occasional fluctuations.

The downward trend in operating ROA over time may raise concerns regarding the company's operational efficiency and profitability. It suggests that Ross Stores Inc may not be effectively managing its assets to generate profits from its core operations.

Further analysis and investigation into the reasons behind the declining operating ROA are warranted to identify potential issues or inefficiencies within the company's operations and asset utilization strategies.