Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Ross Stores Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Federal	442,152)	44,164)	414,823)	357,170)	660,017)	632,872)
State	78,024)	4,563)	56,528)	74,472)	52,853)	44,333)
Current	520,176)	48,727)	471,351)	431,642)	712,870)	677,205)
Federal	21,103)	(27,487)	28,244)	33,913)	(40,468)	(8,350)
State	(5,328)	(325)	3,765)	(2,136)	5,565)	(353)
Deferred	15,775)	(27,812)	32,009)	31,777)	(34,903)	(8,703)
Provision for income taxes	535,951)	20,915)	503,360)	463,419)	677,967)	668,502)

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).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Ross Stores Inc. current decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Ross Stores Inc. deferred decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Ross Stores Inc. provision for income taxes decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Ross Stores Inc., effective income tax rate (EITR) reconciliation

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Federal income taxes at the statutory rate	21.00%	21.00%	21.00%	21.00%	34.00%	35.00%
State income taxes, net of federal benefit	3.20%	4.10%	3.20%	3.50%	2.00%	2.00%
Hiring tax credits	-0.50%	-5.40%	-0.40%	-0.50%	0.00%	0.00%
Tax audit settlements	0.00%	0.00%	-0.50%	-1.30%	0.00%	0.00%
Other, net	0.00%	0.00%	0.00%	-0.10%	0.00%	0.00%
Impact of the Tax Act on deferred taxes	0.00%	0.00%	0.00%	0.00%	-3.00%	0.00%
Effective income tax rate	23.70%	19.70%	23.30%	22.60%	33.00%	37.00%

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).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Ross Stores Inc. effective income tax rate decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Ross Stores Inc., components of deferred tax assets and liabilities

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Accrued liabilities	34,211)	30,415)	35,242)	38,367)	46,489)	71,796)
Deferred compensation	38,685)	34,545)	33,108)	30,886)	28,094)	36,101)
Stock-based compensation	45,840)	39,302)	35,290)	36,118)	34,986)	44,865)
Deferred rent	—)	—)	—)	19,824)	18,013)	25,221)
State taxes and credits	18,501)	10,926)	20,178)	20,310)	20,206)	28,484)
Employee benefits	28,430)	37,779)	18,425)	18,845)	15,242)	23,987)
Operating lease liabilities	801,186)	829,946)	797,467)	—)	—)	—)
Other	9,632)	6,239)	3,353)	1,412)	5,224)	8,223)
Gross deferred tax assets	976,485)	989,152)	943,063)	165,762)	168,254)	238,677)
Valuation allowance	(1,931)	(4,089)	(4,590)	(4,639)	(4,659)	(3,730)
Deferred tax assets	974,554)	985,063)	938,473)	161,123)	163,595)	234,947)
Depreciation	(293,065)	(285,161)	(273,255)	(238,631)	(217,332)	(313,526)
Merchandise inventory	(27,699)	(25,434)	(26,376)	(25,686)	(19,055)	(28,853)
Supplies	(12,280)	(11,589)	(10,972)	(10,308)	(9,529)	(13,418)
Operating lease assets	(764,557)	(775,183)	(766,874)	—)	—)	—)
Other	(14,595)	(9,563)	(10,675)	(10,806)	(3,485)	(535)
Deferred tax liabilities	(1,112,196)	(1,106,930)	(1,088,152)	(285,431)	(249,401)	(356,332)
Net deferred tax assets (liabilities)	(137,642)	(121,867)	(149,679)	(124,308)	(85,806)	(121,385)

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).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Ross Stores Inc. gross deferred tax assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Ross Stores Inc. deferred tax assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Ross Stores Inc. net deferred tax assets (liabilities) increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.

Ross Stores Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
	Deferred tax liabilities	137,642)	121,867)	149,679)	124,308)	85,806)	121,385)

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).

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Item	Description	The company
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Ross Stores Inc. deferred tax liabilities decreased from 2020 to 2021 but then increased from 2021 to 2022 not reaching 2020 level.

Ross Stores Inc., adjustments to financial statements

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Adjustment to Total Liabilities
Total liabilities (as reported)	9,580,206)	9,427,227)	5,989,118)	2,767,945)	2,672,743)	2,561,334)
Less: Noncurrent deferred tax liabilities, net	137,642)	121,867)	149,679)	124,308)	85,806)	121,385)
Total liabilities (adjusted)	9,442,564)	9,305,360)	5,839,439)	2,643,637)	2,586,937)	2,439,949)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Less: Net deferred tax assets (liabilities)	(137,642)	(121,867)	(149,679)	(124,308)	(85,806)	(121,385)
Stockholders’ equity (adjusted)	4,197,692)	3,412,507)	3,508,928)	3,430,054)	3,135,114)	2,869,402)
Adjustment to Net Earnings
Net earnings (as reported)	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)
Add: Deferred income tax expense (benefit)	15,775)	(27,812)	32,009)	31,777)	(34,903)	(8,703)
Net earnings (adjusted)	1,738,364)	57,570)	1,692,937)	1,619,234)	1,327,850)	1,108,951)

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).

Ross Stores Inc., Financial Data: Reported vs. Adjusted

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Ross Stores Inc., adjusted financial ratios

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net Profit Margin
Reported net profit margin	9.11%	0.68%	10.36%	10.59%	9.64%	8.69%
Adjusted net profit margin	9.19%	0.46%	10.56%	10.81%	9.39%	8.62%
Financial Leverage
Reported financial leverage	3.36	3.86	2.78	1.84	1.88	1.93
Adjusted financial leverage	3.25	3.73	2.66	1.77	1.83	1.85
Return on Equity (ROE)
Reported ROE	42.43%	2.59%	49.44%	48.02%	44.69%	40.67%
Adjusted ROE	41.41%	1.69%	48.25%	47.21%	42.35%	38.65%
Return on Assets (ROA)
Reported ROA	12.63%	0.67%	17.77%	26.14%	23.82%	21.05%
Adjusted ROA	12.74%	0.45%	18.11%	26.66%	23.21%	20.89%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Ross Stores Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Ross Stores Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Ross Stores Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Ross Stores Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Ross Stores Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
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)
Sales	18,916,244)	12,531,565)	16,039,073)	14,983,541)	14,134,732)	12,866,757)
Profitability Ratio
Net profit margin¹	9.11%	0.68%	10.36%	10.59%	9.64%	8.69%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings	1,738,364)	57,570)	1,692,937)	1,619,234)	1,327,850)	1,108,951)
Sales	18,916,244)	12,531,565)	16,039,073)	14,983,541)	14,134,732)	12,866,757)
Profitability Ratio
Adjusted net profit margin²	9.19%	0.46%	10.56%	10.81%	9.39%	8.62%

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).

2022 Calculations

¹ Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 1,722,589 ÷ 18,916,244 = 9.11%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Sales
= 100 × 1,738,364 ÷ 18,916,244 = 9.19%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Ross Stores Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Stockholders’ equity	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Solvency Ratio
Financial leverage¹	3.36	3.86	2.78	1.84	1.88	1.93
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Adjusted stockholders’ equity	4,197,692)	3,412,507)	3,508,928)	3,430,054)	3,135,114)	2,869,402)
Solvency Ratio
Adjusted financial leverage²	3.25	3.73	2.66	1.77	1.83	1.85

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 13,640,256 ÷ 4,060,050 = 3.36

² Adjusted financial leverage = Total assets ÷ Adjusted stockholders’ equity
= 13,640,256 ÷ 4,197,692 = 3.25

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Ross Stores Inc. adjusted financial leverage ratio 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
As Reported
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)
Stockholders’ equity	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Profitability Ratio
ROE¹	42.43%	2.59%	49.44%	48.02%	44.69%	40.67%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings	1,738,364)	57,570)	1,692,937)	1,619,234)	1,327,850)	1,108,951)
Adjusted stockholders’ equity	4,197,692)	3,412,507)	3,508,928)	3,430,054)	3,135,114)	2,869,402)
Profitability Ratio
Adjusted ROE²	41.41%	1.69%	48.25%	47.21%	42.35%	38.65%

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).

2022 Calculations

¹ ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 1,722,589 ÷ 4,060,050 = 42.43%

² Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted stockholders’ equity
= 100 × 1,738,364 ÷ 4,197,692 = 41.41%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Ross Stores Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
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)
Total assets	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Profitability Ratio
ROA¹	12.63%	0.67%	17.77%	26.14%	23.82%	21.05%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings	1,738,364)	57,570)	1,692,937)	1,619,234)	1,327,850)	1,108,951)
Total assets	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Profitability Ratio
Adjusted ROA²	12.74%	0.45%	18.11%	26.66%	23.21%	20.89%

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).

2022 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,722,589 ÷ 13,640,256 = 12.63%

² Adjusted ROA = 100 × Adjusted net earnings ÷ Total assets
= 100 × 1,738,364 ÷ 13,640,256 = 12.74%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Ross Stores Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.

Ross Stores Inc. (NASDAQ:ROST)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Ross Stores Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Ross Stores Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)