Ross Stores Inc (ROST)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,300,100 | 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 | 10,728,000 | 9,348,370 | 9,415,840 | 9,151,950 | 9,049,120 |
| 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 |
| Financial leverage ratio | 2.94 | 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 | 3.81 | 2.78 | 2.87 | 2.78 | 2.77 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,300,100K ÷ $4,871,330K
= 2.94
The financial leverage ratio of Ross Stores Inc has shown a fluctuating trend over the past quarters, ranging from 2.78 to 4.16. This ratio indicates the company's level of debt relative to its equity capital. The increasing trend in the ratio from 2.78 to 4.16 suggests that the company has been relying more on debt to finance its operations compared to equity.
A higher financial leverage ratio typically indicates higher financial risk as the company is more leveraged. It can magnify returns on equity when the company is performing well, but it also amplifies losses in downturns. Therefore, it is crucial for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its debt obligations and manage its financial risk effectively.
Overall, the increasing trend in the financial leverage ratio of Ross Stores Inc warrants a detailed analysis of its debt management strategies and financial health to ensure sustainable growth and stability in the future.
Peer comparison
Feb 3, 2024