Ross Stores Inc (ROST)
Solvency ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.15 | 0.00 | 0.00 | 0.18 |
| Debt-to-capital ratio | 0.00 | 0.31 | 0.00 | 0.00 | 0.36 |
| Debt-to-equity ratio | 0.00 | 0.45 | 0.00 | 0.00 | 0.57 |
| Financial leverage ratio | 2.71 | 2.94 | 2.94 | 3.13 | 3.13 |
Solvency ratios measure a company's ability to meet its long-term financial obligations. Ross Stores Inc's solvency ratios show a favorable trend over the years.
1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets financed by debt. Ross Stores Inc has maintained a low debt-to-assets ratio, ranging from 0.00 to 0.18 over the years, implying that only a small percentage of its assets are financed by debt.
2. Debt-to-capital ratio: The debt-to-capital ratio measures the extent to which a company is funded by debt relative to its total capital. Ross Stores Inc has consistently kept this ratio low, fluctuating between 0.00 and 0.36, reflecting a conservative financial structure with minimal reliance on debt.
3. Debt-to-equity ratio: This ratio compares a company's total debt to its shareholders' equity, indicating the level of financial leverage. Ross Stores Inc has shown a decreasing trend in this ratio, dropping from 0.57 in January 2023 to 0.00 by January 31, 2025, suggesting a decreasing reliance on debt financing and a strengthening equity position.
4. Financial leverage ratio: The financial leverage ratio measures the company's total assets relative to its equity. Ross Stores Inc has steadily reduced its financial leverage ratio from 3.13 in January 2023 to 2.71 by January 31, 2025, indicating a decline in the level of financial risk and a more solid financial base.
Overall, Ross Stores Inc demonstrates strong solvency levels with low debt ratios across the board, showcasing a healthy financial position and an ability to meet its long-term obligations effectively.
Coverage ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 44.50 | 34.36 | 34.36 | 700.33 | 25.68 |
To analyze Ross Stores Inc's interest coverage, we will examine the ratio over multiple periods. The interest coverage ratio calculates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In January 28, 2023, Ross Stores Inc had an interest coverage ratio of 25.68, indicating that the company earned 25.68 times more operating income than it needed to cover its interest expenses.
In January 31, 2023, the interest coverage ratio significantly improved to 700.33. This suggests a substantial increase in Ross Stores Inc's ability to cover its interest payments, reflecting strong earnings relative to interest expenses.
The interest coverage ratio remained relatively stable in the following periods. In January 31, 2024, and February 3, 2024, the ratio was 34.36, demonstrating consistent ability to meet interest obligations comfortably.
By January 31, 2025, the interest coverage ratio improved slightly to 44.50, indicating continued strength in the company's ability to cover interest expenses with operating income.
Overall, Ross Stores Inc has maintained a healthy interest coverage ratio over the analyzed periods, demonstrating a strong capacity to fulfill its interest payment obligations with earnings generated from its operations.