Return on Equity (ROE)
since 2005
Calculation
Ross Stores Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net earnings1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 42.43% | = | 100 | × | 1,722,589) | ÷ | 4,060,050) |
| Jan 30, 2021 | 2.59% | = | 100 | × | 85,382) | ÷ | 3,290,640) |
| Feb 1, 2020 | 49.44% | = | 100 | × | 1,660,928) | ÷ | 3,359,249) |
| Feb 2, 2019 | 48.02% | = | 100 | × | 1,587,457) | ÷ | 3,305,746) |
| Feb 3, 2018 | 44.69% | = | 100 | × | 1,362,753) | ÷ | 3,049,308) |
| Jan 28, 2017 | 40.67% | = | 100 | × | 1,117,654) | ÷ | 2,748,017) |
| Jan 30, 2016 | 41.29% | = | 100 | × | 1,020,661) | ÷ | 2,471,991) |
| Jan 31, 2015 | 40.57% | = | 100 | × | 924,724) | ÷ | 2,279,210) |
| Feb 1, 2014 | 41.71% | = | 100 | × | 837,304) | ÷ | 2,007,302) |
| Feb 2, 2013 | 44.53% | = | 100 | × | 786,763) | ÷ | 1,766,863) |
| Jan 28, 2012 | 44.02% | = | 100 | × | 657,170) | ÷ | 1,493,012) |
| Jan 29, 2011 | 41.63% | = | 100 | × | 554,797) | ÷ | 1,332,692) |
| Jan 30, 2010 | 38.26% | = | 100 | × | 442,757) | ÷ | 1,157,293) |
| Jan 31, 2009 | 30.66% | = | 100 | × | 305,441) | ÷ | 996,369) |
| Feb 2, 2008 | 26.89% | = | 100 | × | 261,051) | ÷ | 970,649) |
| Feb 3, 2007 | 26.56% | = | 100 | × | 241,634) | ÷ | 909,830) |
| Jan 28, 2006 | 23.87% | = | 100 | × | 199,632) | ÷ | 836,172) |
| Jan 29, 2005 | 22.19% | = | 100 | × | 169,902) | ÷ | 765,569) |
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
Financial performance from 2005 to 2022 is characterized by a long-term trajectory of growth in both net earnings and stockholders' equity, which drove a substantial expansion of the return on equity (ROE) for the majority of the analyzed period.
- Net Earnings Trends
- Net earnings exhibited consistent year-over-year growth from 2005 through 2020, increasing from US$ 169.9 million to US$ 1.66 billion. A severe contraction occurred in the period ending January 30, 2021, where earnings fell to US$ 85.4 million. This was followed by a rapid recovery in the period ending January 29, 2022, with earnings reaching a period high of US$ 1.72 billion.
- Stockholders' Equity Growth
- Stockholders' equity maintained a steady upward trend throughout the timeframe, rising from US$ 765.6 million in 2005 to US$ 4.06 billion in 2022. The growth in the capital base was consistent, reflecting a continuous accumulation of equity regardless of the volatility seen in annual net earnings.
- Return on Equity (ROE) Dynamics
- The ROE demonstrated three distinct phases. First, a growth phase occurred between 2005 and 2013, where the ratio climbed from 22.19% to 44.53%. Second, a period of relative stability was observed from 2014 to 2017, with values fluctuating slightly around 41%. Third, a peak was reached in 2020 at 49.44%, immediately preceding a sharp decline to 2.59% in 2021. This decline was directly correlated with the collapse in net earnings for that period. By 2022, the ROE recovered to 42.43%, aligning with historical norms.
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Comparison to Competitors
Ross Stores Inc., ROE, 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 | 42.43% | -1.86% | — | — | 54.69% |
| Jan 30, 2021 | 2.59% | 24.13% | 390.00% | 406.05% | 1.55% |
| Feb 1, 2020 | 49.44% | 22.84% | — | 217.09% | 55.01% |
| Feb 2, 2019 | 48.02% | 18.67% | — | 63.50% | 60.61% |
| Feb 3, 2018 | 44.69% | 23.13% | 593.54% | 58.69% | 50.66% |
| Jan 28, 2017 | 40.67% | 10.95% | 183.64% | 48.07% | 50.95% |
| Jan 30, 2016 | 41.29% | 12.29% | 110.97% | 33.26% | 52.88% |
| Jan 31, 2015 | 40.57% | 4.45% | 68.06% | 27.07% | 51.95% |
| Feb 1, 2014 | 41.71% | -2.24% | 43.00% | 19.29% | 50.53% |
| Feb 2, 2013 | 44.53% | 2.81% | 25.51% | 14.14% | 52.01% |
| Jan 28, 2012 | 44.02% | -0.48% | 21.70% | 11.12% | 46.62% |
| Jan 29, 2011 | 41.63% | 8.13% | 17.67% | 11.10% | 43.33% |
| Jan 30, 2010 | 38.26% | 16.78% | 13.72% | 9.35% | 42.00% |
| Jan 31, 2009 | 30.66% | 17.16% | 12.71% | 12.16% | 41.26% |
| Feb 2, 2008 | 26.89% | 24.14% | 24.81% | 17.45% | 36.21% |
| Feb 3, 2007 | 26.56% | 39.77% | 23.02% | 19.75% | 32.23% |
| Jan 28, 2006 | 23.87% | 44.08% | 21.70% | 19.32% | 36.48% |
| Jan 29, 2005 | 22.19% | 145.93% | 20.70% | 18.86% | 40.17% |
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), 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., ROE, long-term trends, comparison to sector (consumer discretionary distribution & retail)
| Ross Stores Inc. | Consumer Discretionary Distribution & Retail | |
|---|---|---|
| Jan 29, 2022 | 42.43% | 17.48% |
| Jan 30, 2021 | 2.59% | 35.05% |
| Feb 1, 2020 | 49.44% | 40.86% |
| Feb 2, 2019 | 48.02% | 40.77% |
| Feb 3, 2018 | 44.69% | 44.19% |
| Jan 28, 2017 | 40.67% | 38.11% |
| Jan 30, 2016 | 41.29% | 37.81% |
| Jan 31, 2015 | 40.57% | 32.09% |
| Feb 1, 2014 | 41.71% | 24.32% |
| Feb 2, 2013 | 44.53% | 19.26% |
| Jan 28, 2012 | 44.02% | 15.66% |
| Jan 29, 2011 | 41.63% | 15.30% |
| Jan 30, 2010 | 38.26% | 14.12% |
| Jan 31, 2009 | 30.66% | 14.43% |
| Feb 2, 2008 | 26.89% | 22.32% |
| Feb 3, 2007 | 26.56% | 22.78% |
| Jan 28, 2006 | 23.87% | 21.78% |
| Jan 29, 2005 | 22.19% | 21.81% |
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., ROE, long-term trends, comparison to industry (consumer discretionary)
| Ross Stores Inc. | Consumer Discretionary | |
|---|---|---|
| Jan 29, 2022 | 42.43% | 20.78% |
| Jan 30, 2021 | 2.59% | 33.71% |
| Feb 1, 2020 | 49.44% | 24.49% |
| Feb 2, 2019 | 48.02% | 34.62% |
| Feb 3, 2018 | 44.69% | 34.33% |
| Jan 28, 2017 | 40.67% | 22.85% |
| Jan 30, 2016 | 41.29% | 28.74% |
| Jan 31, 2015 | 40.57% | 29.03% |
| Feb 1, 2014 | 41.71% | 20.60% |
| Feb 2, 2013 | 44.53% | 20.34% |
| Jan 28, 2012 | 44.02% | 21.97% |
| Jan 29, 2011 | 41.63% | 34.92% |
| Jan 30, 2010 | 38.26% | 24.34% |
| Jan 31, 2009 | 30.66% | 25.32% |
| Feb 2, 2008 | 26.89% | 1.64% |
| Feb 3, 2007 | 26.56% | 16.06% |
| Jan 28, 2006 | 23.87% | 3.84% |
| Jan 29, 2005 | 22.19% | 19.92% |
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).