Return on Assets (ROA)
since 2005
Calculation
Ross Stores Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 12.63% | = | 100 | × | 1,722,589) | ÷ | 13,640,256) |
| Jan 30, 2021 | 0.67% | = | 100 | × | 85,382) | ÷ | 12,717,867) |
| Feb 1, 2020 | 17.77% | = | 100 | × | 1,660,928) | ÷ | 9,348,367) |
| Feb 2, 2019 | 26.14% | = | 100 | × | 1,587,457) | ÷ | 6,073,691) |
| Feb 3, 2018 | 23.82% | = | 100 | × | 1,362,753) | ÷ | 5,722,051) |
| Jan 28, 2017 | 21.05% | = | 100 | × | 1,117,654) | ÷ | 5,309,351) |
| Jan 30, 2016 | 20.96% | = | 100 | × | 1,020,661) | ÷ | 4,869,119) |
| Jan 31, 2015 | 19.66% | = | 100 | × | 924,724) | ÷ | 4,703,134) |
| Feb 1, 2014 | 21.49% | = | 100 | × | 837,304) | ÷ | 3,896,797) |
| Feb 2, 2013 | 21.43% | = | 100 | × | 786,763) | ÷ | 3,670,561) |
| Jan 28, 2012 | 19.91% | = | 100 | × | 657,170) | ÷ | 3,301,209) |
| Jan 29, 2011 | 17.80% | = | 100 | × | 554,797) | ÷ | 3,116,204) |
| Jan 30, 2010 | 15.99% | = | 100 | × | 442,757) | ÷ | 2,768,633) |
| Jan 31, 2009 | 12.97% | = | 100 | × | 305,441) | ÷ | 2,355,511) |
| Feb 2, 2008 | 11.01% | = | 100 | × | 261,051) | ÷ | 2,371,322) |
| Feb 3, 2007 | 10.24% | = | 100 | × | 241,634) | ÷ | 2,358,591) |
| Jan 28, 2006 | 10.30% | = | 100 | × | 199,632) | ÷ | 1,938,738) |
| Jan 29, 2005 | 9.79% | = | 100 | × | 169,902) | ÷ | 1,735,999) |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
1 US$ in thousands
The financial trajectory from 2005 to 2022 is characterized by a prolonged period of increasing asset efficiency followed by a period of significant volatility and subsequent recovery. Between 2005 and 2019, there was a consistent upward trend in the Return on Assets (ROA), reflecting an increasing ability to generate profit from the company's asset base.
- Long-term Efficiency Growth (2005–2019)
- A sustained increase in ROA is observed, rising from 9.79% in 2005 to a peak of 26.14% in 2019. This growth was driven by net earnings increasing more rapidly than the growth of total assets. For instance, while total assets grew from approximately 1.74 billion to 6.07 billion during this window, net earnings surged from 169.9 million to 1.59 billion, signaling high operational leverage and effective asset management.
- Operational Volatility (2020–2021)
- A sharp reversal in performance occurred between 2020 and 2021. The ROA declined from 17.77% in 2020 to a historical low of 0.67% in 2021. This collapse was the result of a simultaneous decrease in net earnings, which fell to 85.38 million, and a substantial expansion of the asset base, which reached 12.72 billion. The divergence between crashing profitability and an expanding balance sheet led to the lowest recorded asset utilization rate in the period analyzed.
- Recovery and Asset Re-baselining (2022)
- A strong recovery is evident in 2022, with net earnings rebounding to 1.72 billion, the highest value in the dataset. This recovery pushed the ROA back up to 12.63%. However, the ROA remained significantly lower than the 2019 peak despite record earnings, because the total asset base had permanently shifted to a higher level of 13.64 billion, effectively creating a new, larger denominator for the ratio calculation.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Ross Stores Inc., ROA, long-term trends, comparison to competitors
| Ross Stores Inc. | Amazon.com Inc. | Home Depot Inc. | Lowe’s Cos. Inc. | TJX Cos. Inc. | |
|---|---|---|---|---|---|
| Jan 29, 2022 | 12.63% | -0.59% | 22.86% | 18.91% | 11.53% |
| Jan 30, 2021 | 0.67% | 7.93% | 18.23% | 12.49% | 0.29% |
| Feb 1, 2020 | 17.77% | 6.64% | 21.94% | 10.85% | 13.55% |
| Feb 2, 2019 | 26.14% | 5.14% | 25.27% | 6.71% | 21.36% |
| Feb 3, 2018 | 23.82% | 6.19% | 19.38% | 9.77% | 18.55% |
| Jan 28, 2017 | 21.05% | 2.31% | 18.52% | 8.99% | 17.84% |
| Jan 30, 2016 | 20.96% | 2.84% | 16.47% | 8.14% | 19.81% |
| Jan 31, 2015 | 19.66% | 0.91% | 15.88% | 8.48% | 19.91% |
| Feb 1, 2014 | 21.49% | -0.44% | 13.29% | 6.98% | 20.95% |
| Feb 2, 2013 | 21.43% | 0.68% | 11.04% | 6.00% | 20.05% |
| Jan 28, 2012 | 19.91% | -0.12% | 9.58% | 5.48% | 18.07% |
| Jan 29, 2011 | 17.80% | 2.50% | 8.32% | 5.96% | 16.85% |
| Jan 30, 2010 | 15.99% | 6.13% | 6.51% | 5.40% | 16.26% |
| Jan 31, 2009 | 12.97% | 6.53% | 5.49% | 6.72% | 14.25% |
| Feb 2, 2008 | 11.01% | 7.76% | 9.92% | 9.10% | 11.69% |
| Feb 3, 2007 | 10.24% | 7.34% | 11.02% | 11.18% | 12.13% |
| Jan 28, 2006 | 10.30% | 4.35% | 13.12% | 11.23% | 12.56% |
| Jan 29, 2005 | 9.79% | 9.71% | 12.85% | 10.26% | 13.09% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
Comparison to Sector (Consumer Discretionary Distribution & Retail)
Ross Stores Inc., ROA, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ross Stores Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 29, 2022 | 12.63% | 4.19% |
| Jan 30, 2021 | 0.67% | 9.17% |
| Feb 1, 2020 | 17.77% | 9.20% |
| Feb 2, 2019 | 26.14% | 8.83% |
| Feb 3, 2018 | 23.82% | 9.65% |
| Jan 28, 2017 | 21.05% | 7.39% |
| Jan 30, 2016 | 20.96% | 8.42% |
| Jan 31, 2015 | 19.66% | 7.99% |
| Feb 1, 2014 | 21.49% | 6.94% |
| Feb 2, 2013 | 21.43% | 7.03% |
| Jan 28, 2012 | 19.91% | 6.25% |
| Jan 29, 2011 | 17.80% | 6.84% |
| Jan 30, 2010 | 15.99% | 6.80% |
| Jan 31, 2009 | 12.97% | 6.65% |
| Feb 2, 2008 | 11.01% | 9.57% |
| Feb 3, 2007 | 10.24% | 10.89% |
| Jan 28, 2006 | 10.30% | 12.01% |
| Jan 29, 2005 | 9.79% | 11.90% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
Comparison to Industry (Consumer Discretionary)
Ross Stores Inc., ROA, long-term trends, comparison to industry (consumer discretionary)
| Ross Stores Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 29, 2022 | 12.63% | 4.81% |
| Jan 30, 2021 | 0.67% | 7.99% |
| Feb 1, 2020 | 17.77% | 4.36% |
| Feb 2, 2019 | 26.14% | 5.57% |
| Feb 3, 2018 | 23.82% | 5.96% |
| Jan 28, 2017 | 21.05% | 4.05% |
| Jan 30, 2016 | 20.96% | 5.57% |
| Jan 31, 2015 | 19.66% | 6.25% |
| Feb 1, 2014 | 21.49% | 4.75% |
| Feb 2, 2013 | 21.43% | 5.52% |
| Jan 28, 2012 | 19.91% | 5.65% |
| Jan 29, 2011 | 17.80% | 9.48% |
| Jan 30, 2010 | 15.99% | 6.05% |
| Jan 31, 2009 | 12.97% | 4.67% |
| Feb 2, 2008 | 11.01% | 0.21% |
| Feb 3, 2007 | 10.24% | 2.85% |
| Jan 28, 2006 | 10.30% | 0.60% |
| Jan 29, 2005 | 9.79% | 3.80% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).