Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Ross Stores Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Ross Stores Inc. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Ross Stores Inc. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Ross Stores Inc. cash ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Current Ratio
Ross Stores Inc., current ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 7,473,176) | 6,692,491) | 3,432,828) | 3,404,019) | 3,151,157) | 2,813,049) | |
| Current liabilities | 4,214,929) | 3,967,033) | 2,701,934) | 2,009,484) | 1,926,402) | 1,752,506) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.77 | 1.69 | 1.27 | 1.69 | 1.64 | 1.61 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.94 | 1.14 | 1.05 | 1.10 | — | — | |
| Home Depot Inc. | 1.01 | 1.23 | 1.08 | 1.11 | — | — | |
| Lowe’s Cos. Inc. | 1.02 | 1.19 | 1.01 | 0.98 | — | — | |
| TJX Cos. Inc. | 1.27 | 1.46 | 1.24 | 1.53 | — | — | |
| Current Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.98 | 1.17 | 1.06 | 1.10 | — | — | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | 1.14 | 1.24 | 1.18 | 1.08 | — | — | |
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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,473,176 ÷ 4,214,929 = 1.77
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Ross Stores Inc. current ratio improved from 2020 to 2021 and from 2021 to 2022. |
Quick Ratio
Ross Stores Inc., quick ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 4,922,365) | 4,819,293) | 1,351,205) | 1,412,912) | 1,290,294) | 1,111,599) | |
| Short-term investments | —) | —) | —) | —) | 512) | —) | |
| Accounts receivable | 119,247) | 115,067) | 102,236) | 96,711) | 87,868) | 75,154) | |
| Total quick assets | 5,041,612) | 4,934,360) | 1,453,441) | 1,509,623) | 1,378,674) | 1,186,753) | |
| Current liabilities | 4,214,929) | 3,967,033) | 2,701,934) | 2,009,484) | 1,926,402) | 1,752,506) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 1.20 | 1.24 | 0.54 | 0.75 | 0.72 | 0.68 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.69 | 0.86 | 0.83 | 0.83 | — | — | |
| Home Depot Inc. | 0.20 | 0.47 | 0.23 | 0.22 | — | — | |
| Lowe’s Cos. Inc. | 0.07 | 0.28 | 0.06 | 0.05 | — | — | |
| TJX Cos. Inc. | 0.64 | 1.01 | 0.50 | 0.61 | — | — | |
| Quick Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.57 | 0.77 | 0.68 | 0.65 | — | — | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | 0.81 | 0.92 | 0.89 | 0.77 | — | — | |
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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,041,612 ÷ 4,214,929 = 1.20
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Ross Stores Inc. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Cash Ratio
Ross Stores Inc., cash ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 4,922,365) | 4,819,293) | 1,351,205) | 1,412,912) | 1,290,294) | 1,111,599) | |
| Short-term investments | —) | —) | —) | —) | 512) | —) | |
| Total cash assets | 4,922,365) | 4,819,293) | 1,351,205) | 1,412,912) | 1,290,806) | 1,111,599) | |
| Current liabilities | 4,214,929) | 3,967,033) | 2,701,934) | 2,009,484) | 1,926,402) | 1,752,506) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 1.17 | 1.21 | 0.50 | 0.70 | 0.67 | 0.63 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | 0.45 | 0.68 | 0.67 | 0.63 | — | — | |
| Home Depot Inc. | 0.08 | 0.34 | 0.12 | 0.11 | — | — | |
| Lowe’s Cos. Inc. | 0.07 | 0.28 | 0.06 | 0.05 | — | — | |
| TJX Cos. Inc. | 0.59 | 0.97 | 0.45 | 0.55 | — | — | |
| Cash Ratio, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.37 | 0.61 | 0.54 | 0.49 | — | — | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | 0.55 | 0.71 | 0.70 | 0.56 | — | — | |
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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 4,922,365 ÷ 4,214,929 = 1.17
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Ross Stores Inc. cash ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |