Ross Stores Inc (ROST)

Pretax margin

		Jan 31, 2025	Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 31, 2023	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,757,154	2,782,631	2,729,318	2,620,165	2,577,956	2,268,969	2,256,944	2,114,392	2,025,282	1,987,489	1,879,402	1,932,556	2,084,420	2,258,540	2,168,073	1,800,534	1,199,168	106,297	314,062	660,051
Revenue (ttm)	US$ in thousands	21,129,220	21,239,440	21,092,940	20,773,590	20,887,640	19,391,220	19,703,320	19,303,440	18,903,660	18,710,680	18,476,550	18,464,060	18,696,690	18,879,670	18,107,370	17,306,080	15,185,820	12,512,410	12,695,330	12,789,940
Pretax margin		13.05%	13.10%	12.94%	12.61%	12.34%	11.70%	11.45%	10.95%	10.71%	10.62%	10.17%	10.47%	11.15%	11.96%	11.97%	10.40%	7.90%	0.85%	2.47%	5.16%

January 31, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,757,154K ÷ $21,129,220K
= 13.05%

Ross Stores Inc's pretax margin has shown variability over the past few years. Starting from August 1, 2020, the pretax margin was 5.16%, indicating that the company retained approximately 5.16% of its revenue before accounting for taxes and other expenses.

However, the margin decreased to 2.47% by October 31, 2020, suggesting a decrease in profitability. Subsequently, the pretax margin continued to decline to 0.85% by January 30, 2021, showing potential challenges in maintaining profitability.

There was a significant improvement in the pretax margin by May 1, 2021, reaching 7.90%, indicating a positive trend in profitability. This positive trend continued as the pretax margin increased to 11.97% by October 30, 2021, and remained relatively stable around the 10-12% range until January 31, 2025, where it stood at 13.05%.

Overall, the fluctuation in Ross Stores Inc's pretax margin indicates changes in the company's ability to generate profits before taxes and expenses, highlighting the importance of monitoring and managing operational efficiency and cost control measures.