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.

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel

Short-term Activity Ratios (Summary)

Ross Stores Inc., short-term (operating) activity ratios

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Turnover Ratios
Inventory turnover 6.06 6.52 6.30 6.13 6.12 6.06
Receivables turnover 158.63 108.91 156.88 154.93 160.86 171.21
Payables turnover 5.78 4.36 8.90 9.11 9.48 8.98
Working capital turnover 5.81 4.60 21.94 10.74 11.54 12.13
Average No. Days
Average inventory processing period 60 56 58 60 60 60
Add: Average receivable collection period 2 3 2 2 2 2
Operating cycle 62 59 60 62 62 62
Less: Average payables payment period 63 84 41 40 39 41
Cash conversion cycle -1 -25 19 22 23 21

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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Ross Stores Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Receivables turnover An activity ratio equal to revenue divided by receivables. Ross Stores Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Ross Stores Inc. payables turnover ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Ross Stores Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Ross Stores Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Ross Stores Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Ross Stores Inc. number of days of payables outstanding increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Ross Stores Inc. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Inventory Turnover

Ross Stores Inc., inventory turnover 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)
Cost of goods sold 13,708,907 9,838,574 11,536,187 10,726,277 10,042,638 9,173,705
Merchandise inventory 2,262,273 1,508,982 1,832,339 1,750,442 1,641,735 1,512,886
Short-term Activity Ratio
Inventory turnover1 6.06 6.52 6.30 6.13 6.12 6.06
Benchmarks
Inventory Turnover, Competitors2
Amazon.com Inc. 8.40 8.34 9.80 8.08
Home Depot Inc. 4.55 5.25 5.00 5.10
Lowe’s Cos. Inc. 3.65 3.71 3.73 3.85
TJX Cos. Inc. 5.82 5.66 6.13 6.08
Inventory Turnover, Sector
Consumer Discretionary Distribution & Retail 6.10 6.36 6.83 6.07
Inventory Turnover, Industry
Consumer Discretionary 6.67 7.04 7.48 7.72

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 2022 Calculation
Inventory turnover = Cost of goods sold ÷ Merchandise inventory
= 13,708,907 ÷ 2,262,273 = 6.06

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Ross Stores Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Receivables Turnover

Ross Stores Inc., receivables turnover 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
Accounts receivable 119,247 115,067 102,236 96,711 87,868 75,154
Short-term Activity Ratio
Receivables turnover1 158.63 108.91 156.88 154.93 160.86 171.21
Benchmarks
Receivables Turnover, Competitors2
Amazon.com Inc. 19.32 23.26 26.09 22.26
Home Depot Inc. 44.12 44.15 52.34 55.89
Lowe’s Cos. Inc.
TJX Cos. Inc. 93.79 69.69 108.00 112.54
Receivables Turnover, Sector
Consumer Discretionary Distribution & Retail 26.52 30.59 35.28 33.53
Receivables Turnover, Industry
Consumer Discretionary 17.95 21.21 21.81 21.46

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 2022 Calculation
Receivables turnover = Sales ÷ Accounts receivable
= 18,916,244 ÷ 119,247 = 158.63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Ross Stores Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Payables Turnover

Ross Stores Inc., payables turnover 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)
Cost of goods sold 13,708,907 9,838,574 11,536,187 10,726,277 10,042,638 9,173,705
Accounts payable 2,372,302 2,256,928 1,296,482 1,177,104 1,059,844 1,021,735
Short-term Activity Ratio
Payables turnover1 5.78 4.36 8.90 9.11 9.48 8.98
Benchmarks
Payables Turnover, Competitors2
Amazon.com Inc. 3.63 3.46 3.22 3.51
Home Depot Inc. 7.45 7.52 9.33 9.16
Lowe’s Cos. Inc. 5.65 5.51 6.42 5.85
TJX Cos. Inc. 7.77 5.09 11.17 10.53
Payables Turnover, Sector
Consumer Discretionary Distribution & Retail 4.48 4.19 4.25 4.75
Payables Turnover, Industry
Consumer Discretionary 4.80 4.66 4.74 5.51

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 2022 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 13,708,907 ÷ 2,372,302 = 5.78

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Ross Stores Inc. payables turnover ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Working Capital Turnover

Ross Stores Inc., working capital turnover 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)
Current assets 7,473,176 6,692,491 3,432,828 3,404,019 3,151,157 2,813,049
Less: Current liabilities 4,214,929 3,967,033 2,701,934 2,009,484 1,926,402 1,752,506
Working capital 3,258,247 2,725,458 730,894 1,394,535 1,224,755 1,060,543
 
Sales 18,916,244 12,531,565 16,039,073 14,983,541 14,134,732 12,866,757
Short-term Activity Ratio
Working capital turnover1 5.81 4.60 21.94 10.74 11.54 12.13
Benchmarks
Working Capital Turnover, Competitors2
Amazon.com Inc. 24.33 60.82 32.92
Home Depot Inc. 417.56 24.87 76.81 59.68
Lowe’s Cos. Inc. 245.54 24.92 530.50
TJX Cos. Inc. 17.40 6.51 23.97 13.27
Working Capital Turnover, Sector
Consumer Discretionary Distribution & Retail 21.83 63.17 38.37
Working Capital Turnover, Industry
Consumer Discretionary 18.57 11.02 13.68 25.90

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 2022 Calculation
Working capital turnover = Sales ÷ Working capital
= 18,916,244 ÷ 3,258,247 = 5.81

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Ross Stores Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Average Inventory Processing Period

Ross Stores Inc., average inventory processing period 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
Inventory turnover 6.06 6.52 6.30 6.13 6.12 6.06
Short-term Activity Ratio (no. days)
Average inventory processing period1 60 56 58 60 60 60
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Amazon.com Inc. 43 44 37 45
Home Depot Inc. 80 70 73 72
Lowe’s Cos. Inc. 100 98 98 95
TJX Cos. Inc. 63 65 60 60
Average Inventory Processing Period, Sector
Consumer Discretionary Distribution & Retail 60 57 53 60
Average Inventory Processing Period, Industry
Consumer Discretionary 55 52 49 47

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 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.06 = 60

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Ross Stores Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Receivable Collection Period

Ross Stores Inc., average receivable collection period 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
Receivables turnover 158.63 108.91 156.88 154.93 160.86 171.21
Short-term Activity Ratio (no. days)
Average receivable collection period1 2 3 2 2 2 2
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Amazon.com Inc. 19 16 14 16
Home Depot Inc. 8 8 7 7
Lowe’s Cos. Inc.
TJX Cos. Inc. 4 5 3 3
Average Receivable Collection Period, Sector
Consumer Discretionary Distribution & Retail 14 12 10 11
Average Receivable Collection Period, Industry
Consumer Discretionary 20 17 17 17

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 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 158.63 = 2

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Ross Stores Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data
Average inventory processing period 60 56 58 60 60 60
Average receivable collection period 2 3 2 2 2 2
Short-term Activity Ratio
Operating cycle1 62 59 60 62 62 62
Benchmarks
Operating Cycle, Competitors2
Amazon.com Inc. 62 60 51 61
Home Depot Inc. 88 78 80 79
Lowe’s Cos. Inc.
TJX Cos. Inc. 67 70 63 63
Operating Cycle, Sector
Consumer Discretionary Distribution & Retail 74 69 63 71
Operating Cycle, Industry
Consumer Discretionary 75 69 66 64

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 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 60 + 2 = 62

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Ross Stores Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Payables Payment Period

Ross Stores Inc., average payables payment period 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
Payables turnover 5.78 4.36 8.90 9.11 9.48 8.98
Short-term Activity Ratio (no. days)
Average payables payment period1 63 84 41 40 39 41
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amazon.com Inc. 101 105 113 104
Home Depot Inc. 49 49 39 40
Lowe’s Cos. Inc. 65 66 57 62
TJX Cos. Inc. 47 72 33 35
Average Payables Payment Period, Sector
Consumer Discretionary Distribution & Retail 81 87 86 77
Average Payables Payment Period, Industry
Consumer Discretionary 76 78 77 66

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 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.78 = 63

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Ross Stores Inc. number of days of payables outstanding increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Cash Conversion Cycle

Ross Stores Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Selected Financial Data
Average inventory processing period 60 56 58 60 60 60
Average receivable collection period 2 3 2 2 2 2
Average payables payment period 63 84 41 40 39 41
Short-term Activity Ratio
Cash conversion cycle1 -1 -25 19 22 23 21
Benchmarks
Cash Conversion Cycle, Competitors2
Amazon.com Inc. -39 -45 -62 -43
Home Depot Inc. 39 29 41 39
Lowe’s Cos. Inc.
TJX Cos. Inc. 20 -2 30 28
Cash Conversion Cycle, Sector
Consumer Discretionary Distribution & Retail -7 -18 -23 -6
Cash Conversion Cycle, Industry
Consumer Discretionary -1 -9 -11 -2

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 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 60 + 263 = -1

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Ross Stores Inc. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.