Stock Analysis on Net
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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Ross Stores Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Oct 29, 2022 34.53% = 10.93% × 3.16
Jul 30, 2022 35.74% = 11.19% × 3.19
Apr 30, 2022 39.09% = 11.97% × 3.26
Jan 29, 2022 42.43% = 12.63% × 3.36
Oct 30, 2021 40.01% = 11.45% × 3.49
Jul 31, 2021 34.32% = 9.82% × 3.49
May 1, 2021 23.75% = 6.48% × 3.67
Jan 30, 2021 2.59% = 0.67% × 3.86
Oct 31, 2020 10.05% = 2.41% × 4.16
Aug 1, 2020 18.95% = 4.80% × 3.95
May 2, 2020 33.15% = 8.71% × 3.81
Feb 1, 2020 49.44% = 17.77% × 2.78
Nov 2, 2019 50.25% = 17.49% × 2.87
Aug 3, 2019 48.95% = 17.63% × 2.78
May 4, 2019 48.67% = 17.57% × 2.77
Feb 2, 2019 48.02% = 26.14% × 1.84
Nov 3, 2018 50.09% = 25.60% × 1.96
Aug 4, 2018 48.13% = 25.70% × 1.87
May 5, 2018 46.64% = 24.25% × 1.92
Feb 3, 2018 44.69% = 23.82% × 1.88
Oct 28, 2017 42.42% = 21.03% × 2.02
Jul 29, 2017 41.65% = 21.45% × 1.94
Apr 29, 2017 41.33% = 20.67% × 2.00
Jan 28, 2017 40.67% = 21.05% × 1.93
Oct 29, 2016 — = — × 2.02
Jul 30, 2016 — = — × 1.99
Apr 30, 2016 — = — × 2.01

Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2023 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Ross Stores Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Oct 29, 2022 34.53% = 7.74% × 1.41 × 3.16
Jul 30, 2022 35.74% = 7.97% × 1.40 × 3.19
Apr 30, 2022 39.09% = 8.46% × 1.42 × 3.26
Jan 29, 2022 42.43% = 9.11% × 1.39 × 3.36
Oct 30, 2021 40.01% = 8.78% × 1.30 × 3.49
Jul 31, 2021 34.32% = 7.73% × 1.27 × 3.49
May 1, 2021 23.75% = 5.71% × 1.14 × 3.67
Jan 30, 2021 2.59% = 0.68% × 0.99 × 3.86
Oct 31, 2020 10.05% = 2.39% × 1.01 × 4.16
Aug 1, 2020 18.95% = 4.25% × 1.13 × 3.95
May 2, 2020 33.15% = 6.63% × 1.31 × 3.81
Feb 1, 2020 49.44% = 10.36% × 1.72 × 2.78
Nov 2, 2019 50.25% = 10.47% × 1.67 × 2.87
Aug 3, 2019 48.95% = 10.46% × 1.69 × 2.78
May 4, 2019 48.67% = 10.47% × 1.68 × 2.77
Feb 2, 2019 48.02% = 10.59% × 2.47 × 1.84
Nov 3, 2018 50.09% = 10.68% × 2.40 × 1.96
Aug 4, 2018 48.13% = 10.41% × 2.47 × 1.87
May 5, 2018 46.64% = 10.13% × 2.39 × 1.92
Feb 3, 2018 44.69% = 9.64% × 2.47 × 1.88
Oct 28, 2017 42.42% = 8.93% × 2.35 × 2.02
Jul 29, 2017 41.65% = 8.87% × 2.42 × 1.94
Apr 29, 2017 41.33% = 8.77% × 2.36 × 2.00
Jan 28, 2017 40.67% = 8.69% × 2.42 × 1.93
Oct 29, 2016 — = — × — × 2.02
Jul 30, 2016 — = — × — × 1.99
Apr 30, 2016 — = — × — × 2.01

Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2023 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Ross Stores Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Oct 29, 2022 10.93% = 7.74% × 1.41
Jul 30, 2022 11.19% = 7.97% × 1.40
Apr 30, 2022 11.97% = 8.46% × 1.42
Jan 29, 2022 12.63% = 9.11% × 1.39
Oct 30, 2021 11.45% = 8.78% × 1.30
Jul 31, 2021 9.82% = 7.73% × 1.27
May 1, 2021 6.48% = 5.71% × 1.14
Jan 30, 2021 0.67% = 0.68% × 0.99
Oct 31, 2020 2.41% = 2.39% × 1.01
Aug 1, 2020 4.80% = 4.25% × 1.13
May 2, 2020 8.71% = 6.63% × 1.31
Feb 1, 2020 17.77% = 10.36% × 1.72
Nov 2, 2019 17.49% = 10.47% × 1.67
Aug 3, 2019 17.63% = 10.46% × 1.69
May 4, 2019 17.57% = 10.47% × 1.68
Feb 2, 2019 26.14% = 10.59% × 2.47
Nov 3, 2018 25.60% = 10.68% × 2.40
Aug 4, 2018 25.70% = 10.41% × 2.47
May 5, 2018 24.25% = 10.13% × 2.39
Feb 3, 2018 23.82% = 9.64% × 2.47
Oct 28, 2017 21.03% = 8.93% × 2.35
Jul 29, 2017 21.45% = 8.87% × 2.42
Apr 29, 2017 20.67% = 8.77% × 2.36
Jan 28, 2017 21.05% = 8.69% × 2.42
Oct 29, 2016 — = — × —
Jul 30, 2016 — = — × —
Apr 30, 2016 — = — × —

Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2023 is the decrease in profitability measured by net profit margin ratio.