Ross Stores Inc. (NASDAQ:ROST)

The analysis of the financial data reveals a consistent upward trend in both total assets and adjusted total assets over the periods presented.

Total Assets

Total assets increased steadily from US$5,309,351 thousand as of January 28, 2017, to US$13,640,256 thousand by January 29, 2022. This represents more than a twofold increase over the five-year span. The growth was relatively moderate in the initial years, with a notable acceleration after February 2, 2019, culminating in a sharp increase between the fiscal years ending February 1, 2020, and January 30, 2021.

Adjusted Total Assets

Adjusted total assets exhibit a similar upward trajectory, beginning at US$8,135,941 thousand in January 2017 and rising to US$13,640,256 thousand by January 2022. The data for adjusted total assets is not available for the fiscal year ending February 1, 2020, but overall, the trend mirrors that of total assets, indicating consistent growth. The alignment of adjusted total assets with total assets in later years suggests adjustments have converged towards the reported total asset values over time.

In summary, the asset base of the entity has expanded substantially during the time frame analyzed, with both total and adjusted totals reflecting strong growth momentum. This increase in asset holdings may indicate ongoing investments, acquisitions, or other business activities contributing to asset growth. The convergence of adjusted and total assets in recent years may also reflect changes in accounting or asset valuation practices.

The financial data reveals significant changes in the total liabilities and adjusted total liabilities over the six-year period.

Total liabilities

The total liabilities showed a steady increase from 2,561,334 thousand US dollars in January 2017 to 2,767,945 thousand US dollars in February 2019. From 2020 onwards, there is a marked surge, with liabilities more than doubling to 5,989,118 thousand US dollars, followed by a further sharp increase to 9,427,227 thousand US dollars in 2021. In 2022, total liabilities stabilized somewhat, showing a minor increase to 9,580,206 thousand US dollars.

Adjusted total liabilities

This metric also depicts an increasing trend but with less volatility relative to total liabilities. Beginning at 5,266,539 thousand US dollars in 2017, adjusted liabilities rose progressively each year, reaching 5,956,770 thousand US dollars by 2019. The figure slightly declined to 5,839,439 thousand US dollars in 2020 before experiencing a substantial rise to 9,305,360 thousand US dollars in 2021, which marginally increased to 9,442,564 thousand US dollars in 2022.

The data indicate that while total liabilities experienced a sharp escalation starting in 2020, adjusted total liabilities maintained a steadier growth pattern with a temporary dip in 2020. The period from 2020 to 2021 was characterized by substantial increases in both liability measures, which then plateaued in 2022. This pattern may reflect strategic financial decisions, potential restructuring, or increased borrowing during that period.

Stockholders’ equity

Stockholders’ equity shows a general upward trend from approximately $2.75 billion in early 2017 to just over $4.06 billion by early 2022. There is a consistent increase each year, with the highest growth observed between the fiscal years ending in 2021 and 2022, where the equity increased by roughly $770 million. A minor decline occurred in the period ending January 30, 2021, indicating a slight reduction before the significant rebound in the following year.

Adjusted stockholders’ equity

Adjusted stockholders’ equity follows a similar upward trajectory as reported stockholders’ equity, starting at about $2.87 billion in early 2017 and rising to nearly $4.2 billion by early 2022. This adjusted figure consistently remains above the reported stockholders’ equity figure throughout the period, suggesting the adjustments add value. Growth is steady each year, with a noticeable acceleration in the last reporting period, mirroring the trend in the unadjusted equity data. The data also reflects a slight decline in the fiscal year ending in 2021, consistent with the observed trend in stockholders’ equity.

Overall Analysis

The equity metrics indicate a strong and increasing capital base over the six-year period, with adjusted stockholders' equity consistently exceeding the reported equity, which may signify positive adjustments such as revaluation or other comprehensive income effects. The modest dip observed in 2021 was temporary and followed by considerable growth in 2022. This overall positive trajectory reflects a strengthening financial position, enhancing the company’s capacity to support growth and absorb potential financial disturbances.

Total reported debt

The total reported debt remained relatively stable from 2017 through 2020, fluctuating slightly between approximately $312 million and $397 million. However, beginning in 2021, there was a substantial increase, with debt rising sharply to over $2.5 billion and maintaining a similar elevated level in 2022. This indicates a significant change in the company's financing structure or liabilities during the most recent years.

Stockholders’ equity

Stockholders’ equity exhibited a consistent upward trend over the six-year period. Starting at roughly $2.75 billion in 2017, equity increased steadily each year to reach approximately $4.06 billion by 2022. This growth suggests sustained profitability or capital injections that enhanced the company's net asset base.

Total reported capital

Total reported capital, which combines debt and equity, increased gradually from 2017 to 2020, moving from about $3.14 billion to $3.67 billion. Thereafter, there was a marked escalation to over $5.8 billion in 2021 and approximately $6.5 billion in 2022. The sharp rise aligns with the increase in total reported debt, reflecting a larger capital base largely due to increased liabilities.

Adjusted total debt

Adjusted total debt shows a steadily increasing trend from roughly $3.22 billion in 2017 to approximately $5.73 billion in 2021, slightly decreasing to $5.62 billion in 2022. The growth is significant and more prolonged compared to reported debt, suggesting adjustments accounting for additional debt-like items or off-balance-sheet obligations that have been recognized over time.

Adjusted stockholders’ equity

Adjusted stockholders’ equity followed a consistent growth pattern similar to the reported equity, rising from around $2.87 billion in 2017 to over $4.19 billion in 2022, with a peak in 2020. This figure reflects a slightly higher equity base when adjustments are considered, indicating that the adjustments may include items that increase equity such as unrealized gains or equity adjustments not captured in the reported figures.

Adjusted total capital

Adjusted total capital steadily increased from about $6.09 billion in 2017 to nearly $9.82 billion in 2022. The growth rate accelerates notably after 2020, paralleling rises in both adjusted debt and equity. This continuous expansion highlights the overall scaling of financial resources under the adjusted framework, driven predominantly by increasing debt components but supported by rising equity.

Overall observations

The data reflects a strategic shift post-2020, identifiable by a significant increase in debt levels, both reported and adjusted, which drove a substantial rise in total capital measures. Equity maintains a steady growth trend but does not increase as sharply as debt. This shift may suggest increased leverage employed by the company to finance growth, capital expenditures, or other investments. The adjusted figures indicate additional considerations in capital structure, reinforcing the increase in financial commitments and resources over the period.

The financial data reveals significant fluctuations and trends in the net earnings and adjusted net earnings of the company over a span of six fiscal years up to January 29, 2022.

Net earnings

There is a consistent upward trend from 2017 through 2020, with net earnings increasing from approximately 1.12 billion US dollars in 2017 to about 1.66 billion US dollars in 2020. This indicates steady financial growth over these four years.

However, in the fiscal year ending January 30, 2021, there is a sharp decline in net earnings to approximately 85.4 million US dollars, representing a substantial drop compared to previous years. This decline could be attributed to extraordinary events or significant economic disruptions during this period.

Following this decline, net earnings rebounded strongly in 2022, reaching approximately 1.72 billion US dollars, which not only recovers losses from the previous year but also surpasses prior peak earnings levels. This suggests a robust financial recovery and improvement in operational performance.

Adjusted net earnings

The adjusted net earnings exhibit a similar pattern to net earnings, indicating close correlation between the two metrics. From 2017 to 2020, adjusted net earnings increase steadily from around 1.11 billion US dollars to approximately 1.69 billion US dollars.

In the fiscal year ending January 30, 2021, adjusted net earnings sharply decline to about 57.6 million US dollars, which is even lower than the net earnings figure for the same period. This suggests that the adjustments made for extraordinary items or non-recurring events significantly impacted the reported earnings.

In 2022, adjusted net earnings recover markedly to approximately 1.74 billion US dollars, exceeding the pre-2021 peak. This reinforces the narrative of strong recovery and improved core operational profitability following the downturn.

Overall, the data points to a stable growth trajectory in earnings up to 2020, a pronounced but temporary disruption in 2021, likely driven by non-recurring events, and a subsequent recovery to levels higher than any previously reported. This suggests resilience and the ability to rebound effectively after an adverse year.