Ross Stores Inc (ROST)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.18 | 0.18 | 0.19 | 0.03 |
| Debt-to-capital ratio | 0.31 | 0.36 | 0.38 | 0.43 | 0.09 |
| Debt-to-equity ratio | 0.45 | 0.57 | 0.60 | 0.74 | 0.09 |
| Financial leverage ratio | 2.94 | 3.13 | 3.36 | 3.86 | 2.78 |
The solvency ratios of Ross Stores Inc provide insights into the company's ability to meet its long-term financial obligations and its overall financial health.
1. Debt-to-assets ratio: This ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio is generally preferred as it signifies lower financial risk. Ross Stores Inc has shown a decreasing trend in this ratio over the past five years, indicating a strong ability to cover its assets with equity rather than debt.
2. Debt-to-capital ratio: This ratio reflects the extent to which a company is leveraged by debt in relation to its total capital, including both debt and equity. Ross Stores Inc's debt-to-capital ratio has also decreased over the years, showing a positive trend in reducing reliance on debt financing, which is generally seen as a positive sign for solvency.
3. Debt-to-equity ratio: This ratio compares the total debt of the company to its total equity, providing insights into the company's financial structure. A lower ratio suggests a lower dependency on debt for financing operations. Ross Stores Inc has managed to reduce its debt-to-equity ratio over the years, indicating improved financial stability and lower financial risk.
4. Financial leverage ratio: This ratio measures the company's financial leverage by comparing total assets to equity. A high ratio implies higher financial leverage and risk. Ross Stores Inc has shown a decreasing trend in this ratio, indicating a decrease in the level of financial risk over the years.
Overall, the decreasing trend in solvency ratios such as debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios for Ross Stores Inc suggests a positive trajectory towards a healthier financial position with reduced reliance on debt and improved financial stability.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 34.36 | 25.68 | 31.06 | 2.21 | 223.96 |
The interest coverage ratio for Ross Stores Inc has shown variation over the past five years. In February 2024, the interest coverage ratio was 34.36, indicating the company's ability to cover its interest expenses 34.36 times over. This was an improvement compared to the previous year, where the ratio was 25.68.
In January 2022, the interest coverage ratio was 31.06, showcasing a strong ability to cover interest costs. However, there was a significant decline in the ratio in January 2021, dropping to 2.21. This could indicate potential financial strain as the company's ability to cover interest expenses reduced substantially.
In February 2020, there was a sharp increase in the interest coverage ratio to 223.96, which could be due to various factors such as a decrease in debt levels or an increase in earnings. Overall, the trend in Ross Stores Inc's interest coverage ratio has been variable, suggesting fluctuations in the company's ability to meet its interest obligations.