Ross Stores Inc (ROST)

Financial leverage ratio

		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
Total assets	US$ in thousands	14,905,300	14,905,200	14,678,000	14,491,800	14,300,100	14,270,600	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
Total stockholders’ equity	US$ in thousands	5,777,110	5,263,360	5,130,530	4,947,950	4,871,330	4,582,960	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
Financial leverage ratio		2.58	2.83	2.86	2.93	2.94	3.11	3.11	3.14	3.16	3.13	3.16	3.19	3.26	3.36	3.49	3.49	3.67	3.86	4.16	3.95

January 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,905,300K ÷ $5,777,110K
= 2.58

The financial leverage ratio of Ross Stores Inc has shown a declining trend over the past few years, indicating a reduction in the company's reliance on debt to finance its operations. The ratio decreased from 3.95 in August 2020 to 2.58 in January 2025, reflecting a more conservative capital structure.

This reduction in the financial leverage ratio suggests that Ross Stores Inc has been able to strengthen its financial position by lowering its debt levels relative to its equity. A lower leverage ratio typically indicates lower financial risk and greater stability for the company, as it indicates a lower proportion of debt financing in its capital structure.

Overall, the declining trend in Ross Stores Inc's financial leverage ratio signals a positive development in its financial health and suggests that the company has been managing its debt obligations effectively while maintaining a prudent level of leverage.