Ross Stores Inc., adjustment to net earnings

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net earnings (as reported)	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)
Add: Change in unrealized gain (loss) on investments, net of tax	—)	—)	—)	(27)	(64)	(91)
Net earnings (adjusted)	1,722,589)	85,382)	1,660,928)	1,587,430)	1,362,689)	1,117,563)

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Ross Stores Inc., adjusted profitability 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	9.11%	0.68%	10.36%	10.59%	9.64%	8.69%
Return on Equity (ROE)
Reported ROE	42.43%	2.59%	49.44%	48.02%	44.69%	40.67%
Adjusted ROE	42.43%	2.59%	49.44%	48.02%	44.69%	40.67%
Return on Assets (ROA)
Reported ROA	12.63%	0.67%	17.77%	26.14%	23.82%	21.05%
Adjusted ROA	12.63%	0.67%	17.77%	26.14%	23.81%	21.05%

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

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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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings	1,722,589)	85,382)	1,660,928)	1,587,430)	1,362,689)	1,117,563)
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	9.11%	0.68%	10.36%	10.59%	9.64%	8.69%

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 × 1,722,589 ÷ 18,916,244 = 9.11%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by 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)
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings	1,722,589)	85,382)	1,660,928)	1,587,430)	1,362,689)	1,117,563)
Stockholders’ equity	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Profitability Ratio
Adjusted ROE²	42.43%	2.59%	49.44%	48.02%	44.69%	40.67%

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

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings	1,722,589)	85,382)	1,660,928)	1,587,430)	1,362,689)	1,117,563)
Total assets	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Profitability Ratio
Adjusted ROA²	12.63%	0.67%	17.77%	26.14%	23.81%	21.05%

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 × 1,722,589 ÷ 13,640,256 = 12.63%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by 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)

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