Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ross Stores Inc., profitability ratios (quarterly data)
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).
- Gross Profit Margin
- The gross profit margin displayed a relatively stable trend from late 2016 through early 2020, generally fluctuating around the 28% to 29% range. Notable is the substantial decline starting in early 2020, dropping sharply to approximately 21.5% by January 2021, likely influenced by extraordinary market conditions. Following this decline, a partial recovery occurred with margins rising back above 26% by mid-2021, but the margin then gradually decreased again toward the end of 2022, settling near 25.5%.
- Operating Profit Margin
- Operating profit margin trends mirrored those of gross profit margin, maintaining a stable range between approximately 13% and 14.5% prior to 2020. The year 2020 saw a pronounced downturn, with margins plummeting to a low of around 1.5% in October 2020. Recovery began thereafter, reaching roughly 12.4% in late 2021, followed by a moderate decline into 2022, ending slightly above 10%. This pattern suggests operational earnings were significantly compressed during early 2020 but showed resilience in subsequent periods.
- Net Profit Margin
- Net profit margin remained robust and relatively steady before 2020, generally ranging from about 8.7% to just over 10%. A sharp decrease occurred in early 2020, bottoming out close to 0.7% in late 2020. Recovery ensued, with margins climbing back above 9% by late 2021. Nonetheless, the margin experienced a modest decline through 2022, finishing near 7.7%. This indicates net profitability was heavily impacted during early 2020 but recovered over the subsequent quarters.
- Return on Equity (ROE)
- ROE values were high and progressively increased from roughly 41% in late 2016 to peak around 50% in early 2020, indicating strong returns to shareholders in that period. A dramatic reduction followed, with ROE falling to approximately 2.6% by October 2020. Thereafter, ROE rebounded notably, reaching above 42% in late 2021, and then steadily declining to about 34.5% by late 2022. The initial drop and subsequent recovery reflect significant operational and market challenges during 2020, with improved performance in the following periods.
- Return on Assets (ROA)
- ROA showed steady improvement from late 2016, increasing from around 21% to a peak over 26% in early 2019. Beginning in 2020, ROA sharply declined, hitting a low near 0.7% in late 2020. Subsequent quarters saw a gradual recovery, with ROA rising to approximately 12.6% by late 2021, before experiencing a slight decrease to near 11% by the end of 2022. The drop in ROA during 2020 indicates diminished asset profitability during that period, with partial normalization thereafter.
Return on Sales
Return on Investment
Gross Profit Margin
Ross Stores Inc., gross profit margin calculation (quarterly data)
| 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Gross profit (loss) | 1,141,443) | 1,183,474) | 1,136,654) | 1,247,013) | 1,248,537) | 1,394,103) | 1,317,684) | 1,092,627) | 1,043,090) | 604,592) | (47,318) | 1,189,208) | 1,082,685) | 1,136,019) | 1,094,974) | 1,117,644) | 1,002,277) | 1,070,943) | 1,066,400) | 1,145,224) | 959,746) | 1,010,661) | 976,463) | 970,595) | 880,595) | 929,072) | 912,790) | ||||||||
| Sales | 4,565,489) | 4,583,009) | 4,333,100) | 5,020,649) | 4,574,541) | 4,804,974) | 4,516,080) | 4,249,671) | 3,754,509) | 2,684,712) | 1,842,673) | 4,413,445) | 3,849,117) | 3,979,869) | 3,796,642) | 4,107,388) | 3,549,608) | 3,737,926) | 3,588,619) | 4,067,806) | 3,328,894) | 3,431,603) | 3,306,429) | 3,510,158) | 3,086,687) | 3,180,917) | 3,088,995) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| Gross profit margin1 | 25.45% | 26.01% | 26.83% | 27.53% | 27.85% | 27.98% | 26.69% | 21.49% | 21.97% | 22.12% | 23.86% | 28.07% | 28.17% | 28.19% | 28.21% | 28.41% | 28.67% | 28.81% | 29.01% | 28.95% | 28.85% | 28.78% | 28.71% | 28.70% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 46.24% | 45.53% | 44.73% | 43.81% | 43.04% | 42.65% | 42.14% | 42.03% | 41.31% | 40.68% | 40.01% | 39.57% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 33.51% | 33.53% | 33.58% | 33.63% | 33.72% | 33.72% | 33.94% | 33.95% | 34.03% | 34.10% | 34.06% | 34.09% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 33.38% | 33.33% | 33.49% | 33.30% | 33.06% | 32.97% | 33.06% | 33.01% | 32.94% | 32.89% | 32.23% | 31.80% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 27.92% | 28.03% | 28.45% | 28.50% | 28.78% | 28.91% | 27.61% | 23.66% | 23.97% | 23.61% | 25.04% | 28.46% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross profit (loss)Q3 2023
+ Gross profit (loss)Q2 2023
+ Gross profit (loss)Q1 2023
+ Gross profit (loss)Q4 2022)
÷ (SalesQ3 2023
+ SalesQ2 2023
+ SalesQ1 2023
+ SalesQ4 2022)
= 100 × (1,141,443 + 1,183,474 + 1,136,654 + 1,247,013)
÷ (4,565,489 + 4,583,009 + 4,333,100 + 5,020,649)
= 25.45%
2 Click competitor name to see calculations.
- Gross Profit (Loss) Trend
- The gross profit demonstrated a general upward trend from April 2016 through February 2020, increasing from approximately $913 million to about $1.19 billion. The peak before the downturn was in February 2020, just prior to a sharp decline to a loss of nearly $47 million in May 2020. This was followed by a recovery, with gross profit rebounding to over $1 billion in subsequent quarters and reaching values above $1.3 billion by July 2021. Afterward, the gross profit showed some fluctuations, trending downward slightly through late 2022 but remaining above $1.1 billion.
- Sales Trend
- Sales generally increased from just under $3.1 billion in April 2016 to a peak of approximately $4.4 billion in February 2020. However, there was a significant decline in sales in May 2020, dropping to roughly $1.8 billion, likely reflecting external disruptions affecting the business environment. Following this, sales recovered steadily, surpassing $4.8 billion in July 2021 and fluctuating moderately through the later periods, ending near $4.6 billion in the final reported quarter of October 2022.
- Gross Profit Margin Evolution
- The gross profit margin remained relatively stable around 28.7% to 28.2% from the first available data in October 2016 up to February 2020. Beginning with the downturn in May 2020, the margin decreased significantly to a low of approximately 21.5% by January 2021. A notable recovery followed, with margins improving to nearly 28% by July 2021. After this recovery, the margin showed a slight downward trend, declining progressively towards approximately 25.5% by late 2022.
- Insights and Notable Observations
- The data indicates a strong growth trajectory in both sales and gross profit before early 2020, followed by a sharp contraction consistent with a major external shock during the early months of 2020. The loss recorded in gross profit and the simultaneous drop in sales and margin likely reflect operational challenges or market disruptions. The recovery phase beginning mid-2020 suggests effective adaptation and a return towards pre-disruption performance levels, although margins and profit have not fully returned to previous peaks and exhibit increased volatility in the most recent quarters. This volatility may suggest ongoing adjustments in cost structure, pricing strategies, or market conditions.
Operating Profit Margin
Ross Stores Inc., operating profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Operating earnings (loss) | 448,076) | 516,411) | 467,158) | 491,146) | 522,776) | 676,315) | 642,631) | 402,003) | 165,233) | 85,097) | (462,623) | 587,329) | 478,080) | 544,049) | 536,724) | 541,675) | 440,700) | 516,362) | 541,977) | 591,918) | 442,449) | 512,385) | 501,644) | 476,793) | 390,424) | 459,561) | 475,866) | ||||||||
| Sales | 4,565,489) | 4,583,009) | 4,333,100) | 5,020,649) | 4,574,541) | 4,804,974) | 4,516,080) | 4,249,671) | 3,754,509) | 2,684,712) | 1,842,673) | 4,413,445) | 3,849,117) | 3,979,869) | 3,796,642) | 4,107,388) | 3,549,608) | 3,737,926) | 3,588,619) | 4,067,806) | 3,328,894) | 3,431,603) | 3,306,429) | 3,510,158) | 3,086,687) | 3,180,917) | 3,088,995) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| Operating profit margin1 | 10.39% | 10.79% | 11.52% | 12.33% | 12.37% | 10.89% | 8.52% | 1.51% | 2.95% | 5.38% | 8.14% | 13.38% | 13.35% | 13.37% | 13.40% | 13.62% | 13.99% | 14.21% | 14.49% | 14.49% | 14.24% | 14.11% | 13.97% | 14.01% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 4.76% | 3.29% | 2.54% | 2.38% | 2.58% | 3.15% | 4.12% | 5.30% | 6.18% | 6.68% | 6.63% | 5.93% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 15.33% | 15.30% | 15.20% | 15.24% | 15.10% | 14.79% | 14.70% | 13.84% | 14.01% | 13.99% | 13.85% | 14.37% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 10.74% | 12.76% | 12.72% | 12.56% | 12.36% | 11.79% | 11.55% | 10.77% | 10.64% | 10.53% | 9.30% | 8.75% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 9.76% | 9.77% | 10.18% | 9.79% | 9.55% | 9.32% | 7.05% | 1.81% | 3.13% | 3.26% | 5.86% | 10.59% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Operating earnings (loss)Q3 2023
+ Operating earnings (loss)Q2 2023
+ Operating earnings (loss)Q1 2023
+ Operating earnings (loss)Q4 2022)
÷ (SalesQ3 2023
+ SalesQ2 2023
+ SalesQ1 2023
+ SalesQ4 2022)
= 100 × (448,076 + 516,411 + 467,158 + 491,146)
÷ (4,565,489 + 4,583,009 + 4,333,100 + 5,020,649)
= 10.39%
2 Click competitor name to see calculations.
The data reveals several notable trends and fluctuations in the financial performance over the observed periods.
- Operating Earnings (Loss)
- The operating earnings demonstrate cyclical fluctuations with a general pattern of growth followed by notable dips. From April 2016 to February 2020, earnings mostly remain positive, peaking at 591,918 thousand US$ in February 2018. However, a significant loss is observed in May 2020 (-462,623 thousand US$), indicating a sharp downturn, likely reflecting an extraordinary event or market disruption. After this loss, operating earnings gradually recover, reaching 676,315 thousand US$ in July 2021, before showing a slight decline towards late 2022.
- Sales
- Sales figures exhibit a steady upward trend from April 2016 through February 2020, increasing from approximately 3.1 billion US$ to over 4.4 billion US$. A marked drop occurs in May 2020, falling to about 1.8 billion US$, suggesting an external shock adversely impacting revenue. Subsequently, sales recover sharply and continue to rise, peaking around 5 billion US$ by early 2022. The sales figures stabilize somewhat but remain elevated compared to the initial years.
- Operating Profit Margin (%)
- The operating profit margin starts at around 14% in early 2017 and remains relatively stable with mild fluctuations, averaging between 13.3% and 14.5% through early 2020. Corresponding to the earnings and sales decline in mid-2020, the margin drops significantly, reaching a low of 1.51% in October 2020. Thereafter, a gradual restoration of profitability is evident, with margins improving to over 12% by late 2021. However, some margin compression appears in 2022, with percentages slightly declining but still outperforming the mid-2020 trough.
Overall, the patterns suggest seasonal strength in operating earnings and sales through early 2020, followed by a major disruption mid-2020 with deep losses and revenue declines. This is succeeded by a strong recovery phase with improving margins, signaling operational resilience. The slight easing of margin growth in recent periods may warrant monitoring for potential factors affecting cost efficiency or pricing power.
Net Profit Margin
Ross Stores Inc., net profit margin calculation (quarterly data)
| 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Net earnings (loss) | 342,036) | 384,517) | 338,445) | 366,822) | 385,030) | 494,258) | 476,479) | 237,980) | 131,197) | 22,047) | (305,842) | 456,133) | 370,932) | 412,721) | 421,142) | 441,693) | 338,108) | 389,404) | 418,252) | 450,747) | 274,449) | 316,539) | 321,018) | 300,568) | 244,546) | 281,906) | 290,634) | ||||||||
| Sales | 4,565,489) | 4,583,009) | 4,333,100) | 5,020,649) | 4,574,541) | 4,804,974) | 4,516,080) | 4,249,671) | 3,754,509) | 2,684,712) | 1,842,673) | 4,413,445) | 3,849,117) | 3,979,869) | 3,796,642) | 4,107,388) | 3,549,608) | 3,737,926) | 3,588,619) | 4,067,806) | 3,328,894) | 3,431,603) | 3,306,429) | 3,510,158) | 3,086,687) | 3,180,917) | 3,088,995) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| Net profit margin1 | 7.74% | 7.97% | 8.46% | 9.11% | 8.78% | 7.73% | 5.71% | 0.68% | 2.39% | 4.25% | 6.63% | 10.36% | 10.47% | 10.46% | 10.47% | 10.59% | 10.68% | 10.41% | 10.13% | 9.64% | 8.93% | 8.87% | 8.77% | 8.69% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 3.62% | 2.43% | 0.82% | -0.53% | 2.25% | 2.39% | 4.48% | 7.10% | 5.73% | 6.64% | 6.42% | 5.53% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 10.87% | 10.88% | 10.83% | 10.87% | 10.79% | 10.55% | 10.45% | 9.74% | 9.94% | 9.91% | 9.79% | 10.20% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 6.97% | 8.84% | 8.85% | 8.77% | 8.63% | 7.41% | 7.23% | 6.51% | 6.29% | 7.12% | 6.17% | 5.93% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 6.90% | 6.77% | 6.69% | 6.76% | 5.85% | 5.81% | 4.00% | 0.28% | 2.24% | 2.11% | 4.57% | 7.84% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net earnings (loss)Q3 2023
+ Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022)
÷ (SalesQ3 2023
+ SalesQ2 2023
+ SalesQ1 2023
+ SalesQ4 2022)
= 100 × (342,036 + 384,517 + 338,445 + 366,822)
÷ (4,565,489 + 4,583,009 + 4,333,100 + 5,020,649)
= 7.74%
2 Click competitor name to see calculations.
The financial data indicates notable fluctuations in net earnings and sales figures over the analyzed quarterly periods. Net earnings display a pattern of general growth from 2016 through early 2020, peaking in February 2020 before experiencing a significant decline in May 2020, including a substantial net loss. Following this downturn, net earnings demonstrate a recovery trend with positive values resuming and increasing through 2021 and into late 2022, albeit with some volatility.
Sales figures reveal a consistent upward trend from 2016 up to the early months of 2020, culminating in the highest values recorded in February 2020. However, a sharp reduction in sales occurs in May 2020, coinciding with the drop in net earnings, suggesting external or operational challenges during this period. Post-May 2020, sales recover steadily, with quarterly figures improving consistently throughout 2021 and 2022, reaching levels comparable to or exceeding pre-downturn values.
The net profit margin remains stable and moderately increasing from early 2017 through early 2020, mostly ranging between 8.7% and 10.7%, reflecting effective cost management and profitability during this period. The margin sharply declines in the second quarter of 2020, coinciding with the plunge in net earnings and sales, hitting a low of 0.68%. Subsequent quarters indicate a gradual improvement in net profit margin, reaching near pre-2020 levels by early 2022, though some fluctuations persist.
- Net Earnings (US$ in thousands)
- Experienced overall growth from 2016 to early 2020, peaking in February 2020, followed by a drastic loss in May 2020 and gradual recovery thereafter.
- Sales (US$ in thousands)
- Showed a steady increasing trend through early 2020, a significant decline in May 2020, and a consistent recovery trend throughout 2021 and 2022, approaching or exceeding earlier highs.
- Net Profit Margin (%)
- Maintained a stable and modest upward trajectory between 8.7% and 10.7% until early 2020, dropped sharply in the second quarter of 2020, and gradually recovered in following quarters toward previous levels.
In summary, the period prior to 2020 demonstrates steady growth and profitability, while the disruptions in 2020 suggest an extraordinary event impacting financial performance significantly. The recovery phases in both sales and net earnings, accompanied by improvements in profit margin, indicate resilience and a return to operational stability in subsequent quarters.
Return on Equity (ROE)
Ross Stores Inc., ROE calculation (quarterly data)
| 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Net earnings (loss) | 342,036) | 384,517) | 338,445) | 366,822) | 385,030) | 494,258) | 476,479) | 237,980) | 131,197) | 22,047) | (305,842) | 456,133) | 370,932) | 412,721) | 421,142) | 441,693) | 338,108) | 389,404) | 418,252) | 450,747) | 274,449) | 316,539) | 321,018) | 300,568) | 244,546) | 281,906) | 290,634) | ||||||||
| Stockholders’ equity | 4,147,000) | 4,126,951) | 4,053,897) | 4,060,050) | 3,983,217) | 3,903,986) | 3,652,821) | 3,290,640) | 3,019,037) | 2,867,199) | 2,817,392) | 3,359,249) | 3,276,779) | 3,296,264) | 3,267,526) | 3,305,746) | 3,187,163) | 3,184,610) | 3,130,288) | 3,049,308) | 2,858,519) | 2,839,884) | 2,777,746) | 2,748,017) | 2,649,522) | 2,614,330) | 2,539,441) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| ROE1 | 34.53% | 35.74% | 39.09% | 42.43% | 40.01% | 34.32% | 23.75% | 2.59% | 10.05% | 18.95% | 33.15% | 49.44% | 50.25% | 48.95% | 48.67% | 48.02% | 50.09% | 48.13% | 46.64% | 44.69% | 42.42% | 41.65% | 41.33% | 40.67% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 10.97% | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | 22.84% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 1,317.03% | 7,124.47% | — | — | 1,539.90% | 736.64% | 844.74% | 390.00% | 813.68% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | 217.09% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 60.02% | 62.26% | 59.63% | 54.69% | 41.40% | 39.21% | 24.63% | 1.55% | 13.47% | 15.26% | 35.54% | 55.01% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q3 2023 Calculation
ROE = 100
× (Net earnings (loss)Q3 2023
+ Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022)
÷ Stockholders’ equity
= 100 × (342,036 + 384,517 + 338,445 + 366,822)
÷ 4,147,000 = 34.53%
2 Click competitor name to see calculations.
- Net Earnings (Loss)
- The net earnings exhibit notable fluctuations over the periods analyzed. From 2016 through early 2020, net earnings generally increased, reaching a peak in early 2020. However, there was a significant decline in the period ending May 2, 2020, where net earnings turned negative, indicating a loss. Following this loss, net earnings recovered gradually but did not consistently reach the earlier peak levels. The latter periods show a pattern of moderate recovery with some volatility, but overall, net earnings remained lower than the pre-loss peak period.
- Stockholders’ Equity
- Stockholders’ equity shows a generally upward trend from 2016 through early 2020, reflecting consistent growth in the company’s net assets. The equity peaks around early 2020 and then dips noticeably in the following period, coinciding with the net loss recorded at that time. Subsequently, equity recovers and continues a generally increasing trend through the most recent periods, surpassing previous peaks and indicating strengthened capitalization.
- Return on Equity (ROE)
- ROE data exhibit significant variability. Prior to the first data points available in 2017, ROE was above 40%, and the trend from early 2017 to early 2020 shows a steady increase, reaching over 50%. A sharp decline is observed in the period ending May 2020, corresponding with the net loss reported, with ROE dropping below 35%, and further decreasing to single digits in subsequent quarters. After reaching a minimum, ROE improves gradually from mid-2020 onwards, showing a resumption of profitability and efficiency in generating returns on equity, though the levels remain below the pre-2020 highs.
- Overall Observations
- The data reveal that the company experienced strong financial performance and growth from 2016 through early 2020. This period is characterized by increasing net earnings, rising stockholders’ equity, and strong ROE indicating effective capital utilization. The dramatic downturn in early to mid-2020 suggests an impactful event causing a substantial loss and diminished returns, which also reduced stockholders’ equity. Post this period, recovery trends in earnings, equity, and ROE are evident, but the company has not consistently returned to the pre-downturn peak levels within the periods analyzed. The fluctuations suggest susceptibility to external shocks with subsequent resilience and gradual recovery.
Return on Assets (ROA)
Ross Stores Inc., ROA calculation (quarterly data)
| 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 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Net earnings (loss) | 342,036) | 384,517) | 338,445) | 366,822) | 385,030) | 494,258) | 476,479) | 237,980) | 131,197) | 22,047) | (305,842) | 456,133) | 370,932) | 412,721) | 421,142) | 441,693) | 338,108) | 389,404) | 418,252) | 450,747) | 274,449) | 316,539) | 321,018) | 300,568) | 244,546) | 281,906) | 290,634) | ||||||||
| Total assets | 13,100,095) | 13,179,922) | 13,233,698) | 13,640,256) | 13,915,734) | 13,641,400) | 13,395,863) | 12,717,867) | 12,570,666) | 11,322,245) | 10,728,046) | 9,348,367) | 9,415,841) | 9,151,947) | 9,049,120) | 6,073,691) | 6,235,767) | 5,963,756) | 6,020,836) | 5,722,051) | 5,766,978) | 5,514,479) | 5,552,975) | 5,309,351) | 5,349,887) | 5,194,234) | 5,114,177) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| ROA1 | 10.93% | 11.19% | 11.97% | 12.63% | 11.45% | 9.82% | 6.48% | 0.67% | 2.41% | 4.80% | 8.71% | 17.77% | 17.49% | 17.63% | 17.57% | 26.14% | 25.60% | 25.70% | 24.25% | 23.82% | 21.03% | 21.45% | 20.67% | 21.05% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||||||||
| Amazon.com Inc. | 4.12% | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | 6.64% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Home Depot Inc. | 22.24% | 22.27% | 21.57% | 22.86% | 21.82% | 21.54% | 20.35% | 18.23% | 18.66% | 18.67% | 18.68% | 21.94% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Lowe’s Cos. Inc. | 14.23% | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | 10.85% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| TJX Cos. Inc. | 11.96% | 12.40% | 12.04% | 11.53% | 8.87% | 8.73% | 4.99% | 0.29% | 2.38% | 2.68% | 6.63% | 13.55% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
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).
1 Q3 2023 Calculation
ROA = 100
× (Net earnings (loss)Q3 2023
+ Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022)
÷ Total assets
= 100 × (342,036 + 384,517 + 338,445 + 366,822)
÷ 13,100,095 = 10.93%
2 Click competitor name to see calculations.
The financial data reveals various trends related to the company’s profitability and asset base over the analyzed periods. An overview of net earnings, total assets, and return on assets (ROA) percentages provides insight into performance fluctuations and asset utilization effectiveness.
- Net Earnings (Loss)
- Net earnings demonstrate a pattern of volatility with notable peaks and troughs. Initially, earnings hovered around 240,000 to 320,000 thousand US dollars, showing some growth until early 2018 when the company experienced a peak exceeding 450,000 thousand US dollars in January 2018. Following this, earnings slightly declined but remained relatively strong through early 2020. A significant downturn is observed in May 2020 with a reported loss of over -305,000 thousand US dollars, likely reflecting extraordinary circumstances. Post this loss, the net earnings recovered progressively, reaching highs of approximately 490,000 thousand US dollars by late 2021, before experiencing moderate decreases in subsequent quarters.
- Total Assets
- Total assets have shown a consistent upward trend over the period, rising from approximately 5.11 billion in early 2016 to a peak of about 13.92 billion in late 2021. Despite this overall increase, there are minor fluctuations and a slight reduction observed in asset levels after early 2022, although total assets remain significantly higher compared to the starting point of the analysis.
- Return on Assets (ROA)
- The ROA data, provided for several quarters starting from late 2016, indicates a generally strong profitability relative to asset base in the earlier periods of the dataset. ROA percentages were mostly above 20% through early 2019, peaking around 26%. This level of return declined steadily through 2019 and early 2020, dropping sharply to single digits amid the period of large net loss in May 2020. Subsequent quarters show a gradual recovery in ROA, increasing to around 12% by the end of the dataset. This pattern suggests a resilient rebound in asset efficiency and profitability following a period of adverse performance.
Overall, the data highlights a company experiencing robust growth in assets and fluctuating earnings with a significant negative impact during one quarter, followed by recovery in both profitability and asset utilization. The upward trend in total assets suggests ongoing investment or expansion, while the recovery in ROA indicates improving management effectiveness in leveraging these assets after a period of challenge.