Ross Stores Inc (ROST)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,874,520	1,711,880	1,606,589	1,544,787	1,512,041	1,431,820	1,474,814	1,584,555	1,722,589	1,593,747	1,339,914	867,703	85,382	303,535	543,270	933,944	1,660,928	1,646,488	1,613,664	1,590,347
Total stockholders’ equity	US$ in thousands	4,871,330	4,582,960	4,454,740	4,310,400	4,288,580	4,147,000	4,126,950	4,053,900	4,060,050	3,983,220	3,903,990	3,652,820	3,290,640	3,019,040	2,867,200	2,817,390	3,359,250	3,276,780	3,296,260	3,267,530
ROE		38.48%	37.35%	36.06%	35.84%	35.26%	34.53%	35.74%	39.09%	42.43%	40.01%	34.32%	23.75%	2.59%	10.05%	18.95%	33.15%	49.44%	50.25%	48.95%	48.67%

February 3, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,874,520K ÷ $4,871,330K
= 38.48%

Ross Stores Inc has shown a fluctuating trend in its return on equity (ROE) over the past few years. The ROE has generally been quite strong, reflecting its ability to generate profits from shareholders' equity. The ROE increased consistently from 2019 to 2021, reaching its peak at 50.25% in November 2019. However, there was a significant decrease in ROE in January 2021 to 2.59%, which could be a cause for concern.

After the sharp drop, the ROE recovered and continued to show positive growth, with the most recent ROE reported at 38.48% in February 2024. This indicates that Ross Stores Inc has managed to improve its profitability relative to its shareholders' equity in recent quarters.

Overall, the company has exhibited a strong performance in terms of ROE, with occasional fluctuations that may warrant further investigation. It is essential for investors to continue monitoring this metric to assess the company's ability to generate returns on the capital invested by shareholders.