An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Ross Stores Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Total undiscounted future operating lease payments	—	—	—	3,975,910)	3,656,952)	3,496,215)
Discount rate¹	—	—	—	4.03%	4.53%	4.54%

Total present value of future operating lease payments	—	—	—	3,313,133)	2,967,687)	2,826,590)

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 Weighted-average interest rate for Ross Stores Inc. debt

2019 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.03%
2020	555,812)	2020	555,812)	534,280)
2021	580,712)	2021	580,712)	536,591)
2022	499,678)	2022	499,678)	443,828)
2023	424,695)	2023	424,695)	362,612)
2024	339,340)	2024	339,340)	278,511)
2025 and thereafter	1,575,673)	2025	339,340)	267,722)
		2026	339,340)	257,350)
		2027	339,340)	247,381)
		2028	339,340)	237,798)
		2029	218,313)	147,060)
Total:	3,975,910)		3,975,910)	3,313,133)

Based on: 10-K (reporting date: 2019-02-02).

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.53%
2019	516,372)	2019	516,372)	493,994)
2020	531,311)	2020	531,311)	486,258)
2021	452,145)	2021	452,145)	395,872)
2022	372,038)	2022	372,038)	311,619)
2023	290,944)	2023	290,944)	233,133)
2024 and thereafter	1,494,142)	2024	290,944)	223,030)
		2025	290,944)	213,365)
		2026	290,944)	204,118)
		2027	290,944)	195,272)
		2028	290,944)	186,810)
		2029	39,422)	24,215)
Total:	3,656,952)		3,656,952)	2,967,687)

Based on: 10-K (reporting date: 2018-02-03).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.54%
2018	490,936)	2018	490,936)	469,615)
2019	507,976)	2019	507,976)	464,813)
2020	429,178)	2020	429,178)	375,656)
2021	349,362)	2021	349,362)	292,513)
2022	268,224)	2022	268,224)	214,825)
2023 and thereafter	1,450,539)	2023	268,224)	205,496)
		2024	268,224)	196,571)
		2025	268,224)	188,035)
		2026	268,224)	179,869)
		2027	268,224)	172,057)
		2028	109,419)	67,141)
Total:	3,496,215)		3,496,215)	2,826,590)

Based on: 10-K (reporting date: 2017-01-28).

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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 Assets
Total assets (as reported)	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	3,313,133)	2,967,687)	2,826,590)
Total assets (adjusted)	13,640,256)	12,717,867)	9,348,367)	9,386,824)	8,689,738)	8,135,941)
Adjustment to Total Debt
Total debt (as reported)	2,452,325)	2,513,085)	312,891)	312,440)	396,967)	396,493)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	3,313,133)	2,967,687)	2,826,590)
Add: Current operating lease liabilities	630,517)	598,120)	564,481)	—)	—)	—)
Add: Non-current operating lease liabilities	2,539,297)	2,621,594)	2,610,528)	—)	—)	—)
Total debt (adjusted)	5,622,139)	5,732,799)	3,487,900)	3,625,573)	3,364,654)	3,223,083)

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, 2} Equal to total present value of future operating lease payments.

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
Total Asset Turnover¹
Reported total asset turnover	1.39	0.99	1.72	2.47	2.47	2.42
Adjusted total asset turnover	1.39	0.99	1.72	1.60	1.63	1.58
Debt to Equity²
Reported debt to equity	0.60	0.76	0.09	0.09	0.13	0.14
Adjusted debt to equity	1.38	1.74	1.04	1.10	1.10	1.17
Return on Assets³ (ROA)
Reported ROA	12.63%	0.67%	17.77%	26.14%	23.82%	21.05%
Adjusted ROA	12.63%	0.67%	17.77%	16.91%	15.68%	13.74%

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 See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Ross Stores Inc. adjusted total asset turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Ross Stores Inc. adjusted debt to equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level.
Adjusted ROA	A profitability ratio calculated as 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)
Sales	18,916,244)	12,531,565)	16,039,073)	14,983,541)	14,134,732)	12,866,757)
Total assets	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)
Activity Ratio
Total asset turnover¹	1.39	0.99	1.72	2.47	2.47	2.42
Adjusted for Operating Leases
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)
Adjusted total assets	13,640,256)	12,717,867)	9,348,367)	9,386,824)	8,689,738)	8,135,941)
Activity Ratio
Adjusted total asset turnover²	1.39	0.99	1.72	1.60	1.63	1.58

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 Total asset turnover = Sales ÷ Total assets
= 18,916,244 ÷ 13,640,256 = 1.39

² Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 18,916,244 ÷ 13,640,256 = 1.39

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Ross Stores Inc. adjusted total asset turnover 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 debt	2,452,325)	2,513,085)	312,891)	312,440)	396,967)	396,493)
Stockholders’ equity	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Solvency Ratio
Debt to equity¹	0.60	0.76	0.09	0.09	0.13	0.14
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	5,622,139)	5,732,799)	3,487,900)	3,625,573)	3,364,654)	3,223,083)
Stockholders’ equity	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Solvency Ratio
Adjusted debt to equity²	1.38	1.74	1.04	1.10	1.10	1.17

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).

2022 Calculations

¹ Debt to equity = Total debt ÷ Stockholders’ equity
= 2,452,325 ÷ 4,060,050 = 0.60

² Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 5,622,139 ÷ 4,060,050 = 1.38

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Ross Stores Inc. adjusted debt-to-equity 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)
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 Operating Leases
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)
Adjusted total assets	13,640,256)	12,717,867)	9,348,367)	9,386,824)	8,689,738)	8,135,941)
Profitability Ratio
Adjusted ROA²	12.63%	0.67%	17.77%	16.91%	15.68%	13.74%

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 × Net earnings ÷ Adjusted 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 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 Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

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

Adjusted Financial Ratios for Operating Leases (Summary)

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

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)