Stock Analysis on Net

Ross Stores Inc. (NASDAQ:ROST)

This company has been moved to the archive! The financial data has not been updated since December 7, 2022.

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Ross Stores Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,877,216 209,948 1,766,422 1,716,686 1,421,644 1,203,081
Invested capital2 9,245,498 8,769,230 6,807,292 6,884,089 6,397,687 6,022,627
Performance Ratio
ROIC3 20.30% 2.39% 25.95% 24.94% 22.22% 19.98%
Benchmarks
ROIC, Competitors4
Amazon.com Inc. -2.09% 18.50% 16.11% 12.59%
Home Depot Inc. 37.57% 28.36% 35.06% 35.92%
Lowe’s Cos. Inc. 37.37% 24.73% 19.08% 11.47%
TJX Cos. Inc. 18.30% 1.20% 18.89% 18.37%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

1 NOPAT. See details »

2 Invested capital. See details »

3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,877,216 ÷ 9,245,498 = 20.30%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Ross Stores Inc. ROIC deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Decomposition of ROIC

Ross Stores Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Jan 29, 2022 20.30% = 12.87% × 2.05 × 77.12%
Jan 30, 2021 2.39% = 2.39% × 1.43 × 70.17%
Feb 1, 2020 25.95% = 14.07% × 2.36 × 78.25%
Feb 2, 2019 24.94% = 14.51% × 2.18 × 78.96%
Feb 3, 2018 22.22% = 15.44% × 2.21 × 65.13%
Jan 28, 2017 19.98% = 15.01% × 2.14 × 62.30%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2022 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Ross Stores Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,877,216 209,948 1,766,422 1,716,686 1,421,644 1,203,081
Add: Cash operating taxes2 557,086 89,232 490,885 457,547 761,188 727,890
Net operating profit before taxes (NOPBT) 2,434,302 299,180 2,257,307 2,174,233 2,182,832 1,930,971
 
Sales 18,916,244 12,531,565 16,039,073 14,983,541 14,134,732 12,866,757
Profitability Ratio
OPM3 12.87% 2.39% 14.07% 14.51% 15.44% 15.01%
Benchmarks
OPM, Competitors4
Amazon.com Inc. 0.01% 9.14% 7.23% 6.37%
Home Depot Inc. 15.81% 14.46% 14.86% 14.78%
Lowe’s Cos. Inc. 13.11% 10.29% 8.99% 5.96%
TJX Cos. Inc. 9.95% 1.83% 11.34% 11.40%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2022 Calculation
OPM = 100 × NOPBT ÷ Sales
= 100 × 2,434,302 ÷ 18,916,244 = 12.87%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Ross Stores Inc. OPM deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Turnover of Capital (TO)

Ross Stores Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data (US$ in thousands)
Sales 18,916,244 12,531,565 16,039,073 14,983,541 14,134,732 12,866,757
Invested capital1 9,245,498 8,769,230 6,807,292 6,884,089 6,397,687 6,022,627
Efficiency Ratio
TO2 2.05 1.43 2.36 2.18 2.21 2.14
Benchmarks
TO, Competitors3
Amazon.com Inc. 1.92 2.33 2.58 2.21
Home Depot Inc. 3.15 2.66 3.01 3.17
Lowe’s Cos. Inc. 3.68 3.16 2.70 2.90
TJX Cos. Inc. 2.46 1.44 2.23 2.24

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

1 Invested capital. See details »

2 2022 Calculation
TO = Sales ÷ Invested capital
= 18,916,244 ÷ 9,245,498 = 2.05

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Ross Stores Inc. TO deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Effective Cash Tax Rate (CTR)

Ross Stores Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,877,216 209,948 1,766,422 1,716,686 1,421,644 1,203,081
Add: Cash operating taxes2 557,086 89,232 490,885 457,547 761,188 727,890
Net operating profit before taxes (NOPBT) 2,434,302 299,180 2,257,307 2,174,233 2,182,832 1,930,971
Tax Rate
CTR3 22.88% 29.83% 21.75% 21.04% 34.87% 37.70%
Benchmarks
CTR, Competitors4
Amazon.com Inc. 8,113.11% 13.08% 13.72% 10.59%
Home Depot Inc. 24.46% 26.23% 21.74% 23.25%
Lowe’s Cos. Inc. 22.46% 23.91% 21.38% 33.62%
TJX Cos. Inc. 25.39% 54.29% 25.32% 28.10%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 557,086 ÷ 2,434,302 = 22.88%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Ross Stores Inc. CTR increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.