Ross Stores Inc., balance sheet: debt

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Current portion of long-term debt	—)	64,910)	—)	—)	84,973)	—)
Long-term debt, excluding current portion	2,452,325)	2,448,175)	312,891)	312,440)	311,994)	396,493)
Total senior Notes (carrying amount)	2,452,325)	2,513,085)	312,891)	312,440)	396,967)	396,493)

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Debt item	Description	The company
Total senior Notes (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Ross Stores Inc. total debt increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

	Jan 29, 2022
Selected Financial Data (US$ in thousands)
Total senior Notes (fair value)	2,600,000)
Financial Ratio
Debt, fair value to carrying amount ratio	1.06

Weighted-average interest rate on debt: 3.25%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.38%	248,808)	8,397)
4.60%	695,888)	32,011)
0.88%	494,814)	4,330)
4.70%	239,470)	11,255)
4.80%	132,431)	6,357)
1.88%	494,691)	9,275)
5.45%	146,223)	7,969)
Total	2,452,325)	79,594)
3.25%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 79,594 ÷ 2,452,325 = 3.25%

Ross Stores Inc., interest costs incurred

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Interest expense	75,161)	88,064)	9,740)	16,407)	18,847)	19,569)
Capitalized interest	14,476)	12,251)	4,367)	2,497)	710)	26)
Interest costs incurred	89,637)	100,315)	14,107)	18,904)	19,557)	19,595)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Ross Stores Inc. interest expense increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Ross Stores Inc. capitalized interest increased from 2020 to 2021 and from 2021 to 2022.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Ross Stores Inc. interest costs incurred increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

	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 earnings	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)
Add: Income tax expense	535,951)	20,915)	503,360)	463,419)	677,967)	668,502)
Add: Interest expense	75,161)	88,064)	9,740)	16,407)	18,847)	19,569)
Earnings before interest and tax (EBIT)	2,333,701)	194,361)	2,174,028)	2,067,283)	2,059,567)	1,805,725)

Interest costs incurred	89,637)	100,315)	14,107)	18,904)	19,557)	19,595)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	31.05	2.21	223.21	126.00	109.28	92.27
Adjusted interest coverage ratio (with capitalized interest)²	26.04	1.94	154.11	109.36	105.31	92.15

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,333,701 ÷ 75,161 = 31.05

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 2,333,701 ÷ 89,637 = 26.04

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Ross Stores Inc. adjusted interest coverage ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022.

Ross Stores Inc. (NASDAQ:ROST)

Analysis of Debt