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.