Name: Ross Stores Inc. (NASDAQ:ROST) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Ross Stores Inc., consolidated income statement

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Sales	18,916,244)	12,531,565)	16,039,073)	14,983,541)	14,134,732)	12,866,757)
Cost of goods sold	(13,708,907)	(9,838,574)	(11,536,187)	(10,726,277)	(10,042,638)	(9,173,705)
Gross profit	5,207,337)	2,692,991)	4,502,886)	4,257,264)	4,092,094)	3,693,052)
Selling, general and administrative	(2,874,469)	(2,503,281)	(2,356,704)	(2,216,550)	(2,043,698)	(1,890,408)
Operating earnings	2,332,868)	189,710)	2,146,182)	2,040,714)	2,048,396)	1,802,644)
Interest expense on long-term debt	(88,286)	(88,544)	(13,139)	(17,900)	(18,578)	(18,573)
Interest expense on short-term debt	—)	(7,863)	—)	—)	—)	—)
Other interest expense	(1,351)	(3,908)	(968)	(1,004)	(979)	(1,022)
Capitalized interest	14,476)	12,251)	4,367)	2,497)	710)	26)
Interest expense	(75,161)	(88,064)	(9,740)	(16,407)	(18,847)	(19,569)
Interest income	833)	4,651)	27,846)	26,569)	11,171)	3,081)
Interest income (expense), net	(74,328)	(83,413)	18,106)	10,162)	(7,676)	(16,488)
Earnings before taxes	2,258,540)	106,297)	2,164,288)	2,050,876)	2,040,720)	1,786,156)
Provision for taxes on earnings	(535,951)	(20,915)	(503,360)	(463,419)	(677,967)	(668,502)
Net earnings	1,722,589)	85,382)	1,660,928)	1,587,457)	1,362,753)	1,117,654)

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).

Revenue exhibits a consistent growth trend from 2017 through 2020, followed by a significant contraction in 2021 and a sharp recovery to record levels in 2022. The volatility observed in the 2021 fiscal year represents a substantial deviation from the established multi-year growth trajectory, followed by a robust V-shaped recovery.

Revenue and Gross Profitability: Sales increased from 12.87 billion in 2017 to 16.04 billion in 2020. A sharp decline occurred in 2021, with sales falling to 12.53 billion, before surging to 18.92 billion in 2022. Gross profit followed a similar pattern, peaking at 5.21 billion in 2022. The margin compression in 2021 is evident, as gross profit fell to 2.69 billion during the revenue slump, indicating that cost of goods sold did not decrease in a linear proportion to the decline in sales.
Operating Expense Analysis: Selling, general and administrative expenses demonstrated a steady upward trend from 1.89 billion in 2017 to 2.87 billion in 2022. Notably, these expenses continued to rise in 2021 despite the significant drop in sales. This rigidity in operating costs contributed heavily to the collapse of operating earnings in 2021, which plummeted to 189.7 million from 2.15 billion in the prior year.
Interest and Financing Costs: Interest expenses remained relatively low and stable between 2017 and 2020, generally staying below 20 million. A significant shift occurred in 2021, where total interest expense spiked to 88.1 million and remained high at 75.2 million in 2022. This trend suggests a substantial increase in debt utilization or financing requirements during the 2021 period.
Net Earnings and Tax Impact: Net earnings mirrored the volatility of operating income, reaching a high of 1.72 billion in 2022. The 2021 fiscal year saw a precipitous drop in net earnings to 85.4 million, a result of both diminished operating income and the spike in interest expenses. Provision for taxes also declined sharply in 2021 to 20.9 million, reflecting the lower taxable income for that period, before returning to 536 million in 2022.

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