Ross Stores Inc (ROST)

Interest coverage

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Earnings before interest and tax (EBIT)	US$ in thousands	2,820,540	2,545,880	2,545,870	1,990,330	2,068,020
Interest expense	US$ in thousands	63,387	74,095	74,089	2,842	80,526
Interest coverage		44.50	34.36	34.36	700.33	25.68

January 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $2,820,540K ÷ $63,387K
= 44.50

Ross Stores Inc interest coverage ratio has shown a fluctuating trend over the past few years. As of January 28, 2023, the interest coverage ratio stood at 25.68, suggesting the company's ability to cover its interest expenses nearly 26 times over. This ratio significantly improved to 700.33 by January 31, 2023, indicating a substantial increase in the company's ability to meet its interest obligations during that period.

However, this exceptionally high ratio may have been influenced by specific factors or non-recurring events. Subsequently, by January 31, 2024, the interest coverage ratio declined to 34.36, suggesting the company's ability to cover its interest expenses around 34 times over. This ratio remained relatively stable as of February 3, 2024.

As of January 31, 2025, the interest coverage ratio increased to 44.50, indicating an improvement in the company's ability to cover its interest payments. Overall, Ross Stores Inc has maintained a healthy interest coverage ratio over the years, reflecting its ability to meet its interest obligations comfortably. Further analysis of the company's financial health and operating performance would provide a more comprehensive assessment of its overall financial stability.