Name: Ross Stores Inc. (NASDAQ:ROST) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Ross Stores Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Accounts payable	2,372,302)	2,256,928)	1,296,482)	1,177,104)	1,059,844)	1,021,735)
Accrued expenses and other	613,089)	592,122)	462,111)	431,596)	431,706)	398,126)
Current operating lease liabilities	630,517)	598,120)	564,481)	—)	—)	—)
Accrued payroll and benefits	588,772)	400,273)	364,435)	363,035)	349,879)	316,492)
Income taxes payable	10,249)	54,680)	14,425)	37,749)	—)	16,153)
Current portion of long-term debt	—)	64,910)	—)	—)	84,973)	—)
Current liabilities	4,214,929)	3,967,033)	2,701,934)	2,009,484)	1,926,402)	1,752,506)
Long-term debt, excluding current portion	2,452,325)	2,448,175)	312,891)	312,440)	311,994)	396,493)
Non-current operating lease liabilities	2,539,297)	2,621,594)	2,610,528)	—)	—)	—)
Income taxes	65,359)	65,507)	65,956)	77,872)	120,660)	97,502)
Deferred compensation	163,891)	159,116)	141,443)	124,558)	120,613)	100,423)
Deferred social security taxes	—)	36,701)	—)	—)	—)	—)
Deferred rent	—)	—)	—)	81,442)	73,059)	67,941)
Tenant improvement allowances	—)	—)	—)	25,418)	21,668)	20,554)
Other	6,763)	7,234)	6,687)	12,423)	12,541)	4,530)
Other long-term liabilities	236,013)	268,558)	214,086)	321,713)	348,541)	290,950)
Deferred income taxes	137,642)	121,867)	149,679)	124,308)	85,806)	121,385)
Long-term liabilities	5,365,277)	5,460,194)	3,287,184)	758,461)	746,341)	808,828)
Total liabilities	9,580,206)	9,427,227)	5,989,118)	2,767,945)	2,672,743)	2,561,334)
Common stock, par value $0.01 per share	3,517)	3,565)	3,568)	3,682)	3,796)	3,919)
Additional paid-in capital	1,717,530)	1,579,824)	1,458,307)	1,375,965)	1,292,364)	1,215,715)
Treasury stock	(535,895)	(478,550)	(433,328)	(372,663)	(318,279)	(272,846)
Accumulated other comprehensive income	—)	—)	—)	—)	27)	91)
Retained earnings	2,874,898)	2,185,801)	2,330,702)	2,298,762)	2,071,400)	1,801,138)
Stockholders’ equity	4,060,050)	3,290,640)	3,359,249)	3,305,746)	3,049,308)	2,748,017)
Total liabilities and stockholders’ equity	13,640,256)	12,717,867)	9,348,367)	6,073,691)	5,722,051)	5,309,351)

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).

The financial position of the company between 2017 and 2022 is characterized by a significant expansion of total liabilities and a steady growth in stockholders' equity. Total liabilities rose from $2.56 billion in 2017 to $9.58 billion in 2022, representing a substantial increase in the company's leverage and total obligations.

Structural Shifts in Liabilities: A pivot in the liability profile is observed starting in 2020, marked by the introduction of operating lease liabilities. Non-current operating lease liabilities appeared in 2020 at $2.61 billion and remained relatively stable through 2022. Current operating lease liabilities also emerged in 2020 at $564 million, increasing to $630 million by 2022. These additions suggest a change in accounting standards regarding the capitalization of leases.
Debt Obligations and Financing: Long-term debt remained stable and relatively low between 2017 and 2020, fluctuating between $311 million and $396 million. However, a sharp increase is noted in 2021, where long-term debt jumped to $2.45 billion, a level that persisted into 2022. This suggests a strategic shift toward long-term borrowing during the 2021 fiscal period.
Analysis of Current Liabilities: Current liabilities exhibited a steady upward trajectory, growing from $1.75 billion in 2017 to $4.21 billion in 2022. This growth was largely driven by accounts payable, which increased from $1.02 billion to $2.37 billion over the six-year period. Accrued payroll and benefits also saw a significant rise, particularly between 2021 and 2022, increasing from $400 million to $588 million.
Equity Growth and Capital Allocation: Stockholders' equity grew from $2.75 billion in 2017 to $4.06 billion in 2022. This growth was primarily supported by retained earnings, which increased from $1.80 billion to $2.87 billion, despite a dip in 2021. Simultaneously, the company engaged in consistent share repurchases, as evidenced by the treasury stock account increasing from negative $272 million in 2017 to negative $535 million in 2022.
Overall Solvency Trend: While the company has significantly increased its total liabilities, the parallel growth in stockholders' equity indicates a maintained capital cushion. The rapid increase in total liabilities and stockholders' equity combined resulted in the total balance sheet expanding from $5.31 billion in 2017 to $13.64 billion in 2022.

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