Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Ross Stores Inc., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Ross Stores Inc. debt to equity ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Ross Stores Inc. debt to equity ratio (including operating lease liability) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Ross Stores Inc. debt to capital ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Ross Stores Inc. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Ross Stores Inc. debt to assets ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Ross Stores Inc. debt to assets ratio (including operating lease liability) deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Ross Stores Inc. financial leverage ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Ross Stores Inc. interest coverage ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Ross Stores Inc. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Debt to Equity
Ross Stores Inc., debt to equity 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 portion of long-term debt | —) | 64,910) | —) | —) | 84,973) | —) | |
| Long-term debt, excluding current portion | 2,452,325) | 2,448,175) | 312,891) | 312,440) | 311,994) | 396,493) | |
| Total debt | 2,452,325) | 2,513,085) | 312,891) | 312,440) | 396,967) | 396,493) | |
| Stockholders’ equity | 4,060,050) | 3,290,640) | 3,359,249) | 3,305,746) | 3,049,308) | 2,748,017) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.60 | 0.76 | 0.09 | 0.09 | 0.13 | 0.14 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Amazon.com Inc. | 0.59 | 0.54 | 0.66 | 0.83 | — | — | |
| Home Depot Inc. | — | 11.29 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 15.16 | 9.79 | 4.45 | — | — | |
| TJX Cos. Inc. | 0.56 | 1.04 | 0.38 | 0.44 | — | — | |
| Debt to Equity, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.06 | 0.93 | 1.17 | 1.44 | — | — | |
| Debt to Equity, Industry | |||||||
| Consumer Discretionary | 1.62 | 1.57 | 2.27 | 2.45 | — | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 2,452,325 ÷ 4,060,050 = 0.60
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Ross Stores Inc. debt to equity ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Ross Stores Inc., debt to equity (including operating lease liability) 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 portion of long-term debt | —) | 64,910) | —) | —) | 84,973) | —) | |
| Long-term debt, excluding current portion | 2,452,325) | 2,448,175) | 312,891) | 312,440) | 311,994) | 396,493) | |
| Total debt | 2,452,325) | 2,513,085) | 312,891) | 312,440) | 396,967) | 396,493) | |
| Current operating lease liabilities | 630,517) | 598,120) | 564,481) | —) | —) | —) | |
| Non-current operating lease liabilities | 2,539,297) | 2,621,594) | 2,610,528) | —) | —) | —) | |
| Total debt (including operating lease liability) | 5,622,139) | 5,732,799) | 3,487,900) | 312,440) | 396,967) | 396,493) | |
| Stockholders’ equity | 4,060,050) | 3,290,640) | 3,359,249) | 3,305,746) | 3,049,308) | 2,748,017) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.38 | 1.74 | 1.04 | 0.09 | 0.13 | 0.14 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 1.06 | 0.96 | 1.08 | 1.25 | — | — | |
| Home Depot Inc. | — | 13.16 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 18.24 | 12.04 | 4.45 | — | — | |
| TJX Cos. Inc. | 2.08 | 2.66 | 1.93 | 0.44 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 1.67 | 1.46 | 1.76 | 1.82 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 2.00 | 1.93 | 2.70 | 2.71 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 5,622,139 ÷ 4,060,050 = 1.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Ross Stores Inc. debt to equity ratio (including operating lease liability) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Debt to Capital
Ross Stores Inc., debt to capital 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 portion of long-term debt | —) | 64,910) | —) | —) | 84,973) | —) | |
| Long-term debt, excluding current portion | 2,452,325) | 2,448,175) | 312,891) | 312,440) | 311,994) | 396,493) | |
| Total debt | 2,452,325) | 2,513,085) | 312,891) | 312,440) | 396,967) | 396,493) | |
| Stockholders’ equity | 4,060,050) | 3,290,640) | 3,359,249) | 3,305,746) | 3,049,308) | 2,748,017) | |
| Total capital | 6,512,375) | 5,803,725) | 3,672,140) | 3,618,186) | 3,446,275) | 3,144,510) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.38 | 0.43 | 0.09 | 0.09 | 0.12 | 0.13 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Amazon.com Inc. | 0.37 | 0.35 | 0.40 | 0.45 | — | — | |
| Home Depot Inc. | 1.04 | 0.92 | 1.11 | 1.07 | — | — | |
| Lowe’s Cos. Inc. | 1.24 | 0.94 | 0.91 | 0.82 | — | — | |
| TJX Cos. Inc. | 0.36 | 0.51 | 0.27 | 0.31 | — | — | |
| Debt to Capital, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.51 | 0.48 | 0.54 | 0.59 | — | — | |
| Debt to Capital, Industry | |||||||
| Consumer Discretionary | 0.62 | 0.61 | 0.69 | 0.71 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 2,452,325 ÷ 6,512,375 = 0.38
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Ross Stores Inc. debt to capital ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Ross Stores Inc., debt to capital (including operating lease liability) 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 portion of long-term debt | —) | 64,910) | —) | —) | 84,973) | —) | |
| Long-term debt, excluding current portion | 2,452,325) | 2,448,175) | 312,891) | 312,440) | 311,994) | 396,493) | |
| Total debt | 2,452,325) | 2,513,085) | 312,891) | 312,440) | 396,967) | 396,493) | |
| Current operating lease liabilities | 630,517) | 598,120) | 564,481) | —) | —) | —) | |
| Non-current operating lease liabilities | 2,539,297) | 2,621,594) | 2,610,528) | —) | —) | —) | |
| Total debt (including operating lease liability) | 5,622,139) | 5,732,799) | 3,487,900) | 312,440) | 396,967) | 396,493) | |
| Stockholders’ equity | 4,060,050) | 3,290,640) | 3,359,249) | 3,305,746) | 3,049,308) | 2,748,017) | |
| Total capital (including operating lease liability) | 9,682,189) | 9,023,439) | 6,847,149) | 3,618,186) | 3,446,275) | 3,144,510) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.58 | 0.64 | 0.51 | 0.09 | 0.12 | 0.13 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.51 | 0.49 | 0.52 | 0.56 | — | — | |
| Home Depot Inc. | 1.04 | 0.93 | 1.09 | 1.07 | — | — | |
| Lowe’s Cos. Inc. | 1.20 | 0.95 | 0.92 | 0.82 | — | — | |
| TJX Cos. Inc. | 0.68 | 0.73 | 0.66 | 0.31 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.63 | 0.59 | 0.64 | 0.65 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.67 | 0.66 | 0.73 | 0.73 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,622,139 ÷ 9,682,189 = 0.58
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Ross Stores Inc. debt to capital ratio (including operating lease liability) deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Debt to Assets
Ross Stores Inc., debt to assets 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 portion of long-term debt | —) | 64,910) | —) | —) | 84,973) | —) | |
| Long-term debt, excluding current portion | 2,452,325) | 2,448,175) | 312,891) | 312,440) | 311,994) | 396,493) | |
| Total debt | 2,452,325) | 2,513,085) | 312,891) | 312,440) | 396,967) | 396,493) | |
| Total assets | 13,640,256) | 12,717,867) | 9,348,367) | 6,073,691) | 5,722,051) | 5,309,351) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.18 | 0.20 | 0.03 | 0.05 | 0.07 | 0.07 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Amazon.com Inc. | 0.19 | 0.18 | 0.19 | 0.23 | — | — | |
| Home Depot Inc. | 0.56 | 0.53 | 0.61 | 0.66 | — | — | |
| Lowe’s Cos. Inc. | 0.55 | 0.47 | 0.49 | 0.47 | — | — | |
| TJX Cos. Inc. | 0.12 | 0.20 | 0.09 | 0.16 | — | — | |
| Debt to Assets, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.25 | 0.24 | 0.26 | 0.31 | — | — | |
| Debt to Assets, Industry | |||||||
| Consumer Discretionary | 0.36 | 0.37 | 0.42 | 0.44 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 2,452,325 ÷ 13,640,256 = 0.18
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Ross Stores Inc. debt to assets ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Ross Stores Inc., debt to assets (including operating lease liability) 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 portion of long-term debt | —) | 64,910) | —) | —) | 84,973) | —) | |
| Long-term debt, excluding current portion | 2,452,325) | 2,448,175) | 312,891) | 312,440) | 311,994) | 396,493) | |
| Total debt | 2,452,325) | 2,513,085) | 312,891) | 312,440) | 396,967) | 396,493) | |
| Current operating lease liabilities | 630,517) | 598,120) | 564,481) | —) | —) | —) | |
| Non-current operating lease liabilities | 2,539,297) | 2,621,594) | 2,610,528) | —) | —) | —) | |
| Total debt (including operating lease liability) | 5,622,139) | 5,732,799) | 3,487,900) | 312,440) | 396,967) | 396,493) | |
| Total assets | 13,640,256) | 12,717,867) | 9,348,367) | 6,073,691) | 5,722,051) | 5,309,351) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.41 | 0.45 | 0.37 | 0.05 | 0.07 | 0.07 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Amazon.com Inc. | 0.33 | 0.31 | 0.31 | 0.34 | — | — | |
| Home Depot Inc. | 0.64 | 0.62 | 0.73 | 0.66 | — | — | |
| Lowe’s Cos. Inc. | 0.66 | 0.56 | 0.60 | 0.47 | — | — | |
| TJX Cos. Inc. | 0.44 | 0.50 | 0.47 | 0.16 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Discretionary Distribution & Retail | 0.40 | 0.38 | 0.40 | 0.39 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Discretionary | 0.45 | 0.45 | 0.50 | 0.49 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,622,139 ÷ 13,640,256 = 0.41
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Ross Stores Inc. debt to assets ratio (including operating lease liability) deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Financial Leverage
Ross Stores Inc., financial leverage 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) | |||||||
| Total assets | 13,640,256) | 12,717,867) | 9,348,367) | 6,073,691) | 5,722,051) | 5,309,351) | |
| Stockholders’ equity | 4,060,050) | 3,290,640) | 3,359,249) | 3,305,746) | 3,049,308) | 2,748,017) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.36 | 3.86 | 2.78 | 1.84 | 1.88 | 1.93 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Amazon.com Inc. | 3.17 | 3.04 | 3.44 | 3.63 | — | — | |
| Home Depot Inc. | — | 21.39 | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 32.52 | 20.02 | 9.47 | — | — | |
| TJX Cos. Inc. | 4.74 | 5.28 | 4.06 | 2.84 | — | — | |
| Financial Leverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.18 | 3.82 | 4.44 | 4.62 | — | — | |
| Financial Leverage, Industry | |||||||
| Consumer Discretionary | 4.45 | 4.27 | 5.43 | 5.59 | — | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 13,640,256 ÷ 4,060,050 = 3.36
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Ross Stores Inc. financial leverage ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
Interest Coverage
Ross Stores Inc., interest coverage 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) | |||||||
| Net earnings | 1,722,589) | 85,382) | 1,660,928) | 1,587,457) | 1,362,753) | 1,117,654) | |
| Add: Income tax expense | 535,951) | 20,915) | 503,360) | 463,419) | 677,967) | 668,502) | |
| Add: Interest expense | 75,161) | 88,064) | 9,740) | 16,407) | 18,847) | 19,569) | |
| Earnings before interest and tax (EBIT) | 2,333,701) | 194,361) | 2,174,028) | 2,067,283) | 2,059,567) | 1,805,725) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 31.05 | 2.21 | 223.21 | 126.00 | 109.28 | 92.27 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Amazon.com Inc. | -1.51 | 22.09 | 15.69 | 9.73 | — | — | |
| Home Depot Inc. | 17.14 | 13.60 | 13.25 | 14.85 | — | — | |
| Lowe’s Cos. Inc. | 13.49 | 9.88 | 8.83 | 6.21 | — | — | |
| TJX Cos. Inc. | 37.80 | 1.46 | 75.57 | 65.36 | — | — | |
| Interest Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 7.64 | 15.91 | 14.50 | 11.71 | — | — | |
| Interest Coverage, Industry | |||||||
| Consumer Discretionary | 7.69 | 10.79 | 6.23 | 9.81 | — | — | |
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).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,333,701 ÷ 75,161 = 31.05
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Ross Stores Inc. interest coverage ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Fixed Charge Coverage
Ross Stores Inc., fixed charge coverage 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) | |||||||
| Net earnings | 1,722,589) | 85,382) | 1,660,928) | 1,587,457) | 1,362,753) | 1,117,654) | |
| Add: Income tax expense | 535,951) | 20,915) | 503,360) | 463,419) | 677,967) | 668,502) | |
| Add: Interest expense | 75,161) | 88,064) | 9,740) | 16,407) | 18,847) | 19,569) | |
| Earnings before interest and tax (EBIT) | 2,333,701) | 194,361) | 2,174,028) | 2,067,283) | 2,059,567) | 1,805,725) | |
| Add: Operating lease cost | 687,187) | 669,339) | 639,545) | 569,800) | 532,400) | 505,200) | |
| Earnings before fixed charges and tax | 3,020,888) | 863,700) | 2,813,573) | 2,637,083) | 2,591,967) | 2,310,925) | |
| Interest expense | 75,161) | 88,064) | 9,740) | 16,407) | 18,847) | 19,569) | |
| Operating lease cost | 687,187) | 669,339) | 639,545) | 569,800) | 532,400) | 505,200) | |
| Fixed charges | 762,348) | 757,403) | 649,285) | 586,207) | 551,247) | 524,769) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 3.96 | 1.14 | 4.33 | 4.50 | 4.70 | 4.40 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Amazon.com Inc. | 0.47 | 5.24 | 4.63 | 3.65 | — | — | |
| Home Depot Inc. | 9.94 | 8.97 | 8.26 | 7.80 | — | — | |
| Lowe’s Cos. Inc. | 8.02 | 6.05 | 5.04 | 3.68 | — | — | |
| TJX Cos. Inc. | 3.17 | 1.04 | 3.43 | 3.39 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 2.82 | 5.29 | 5.11 | 4.46 | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Discretionary | 3.35 | 5.00 | 3.18 | 4.31 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,020,888 ÷ 762,348 = 3.96
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Ross Stores Inc. fixed charge coverage ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |