Ross Stores Inc. (NASDAQ:ROST)

Debt to Equity

The debt to equity ratio remained relatively stable and low, around 0.14 to 0.09, from April 2017 through February 2020. Beginning May 2020, there was a marked increase reaching a peak of approximately 1.1, after which the ratio steadily declined to about 0.59 by October 2022. This pattern indicates a significant rise in leverage during 2020, likely related to external factors, followed by gradual deleveraging.

Debt to Equity (Including Operating Lease Liability)

This metric followed a similar initial trend to the standard debt to equity ratio but showed a significant jump in May 2019, rising sharply from approximately 0.09 to over 1.0. The ratio peaked at 2.23 in May 2020, with a subsequent declining trend to around 1.36 by October 2022. This suggests that operating lease liabilities became a more substantial component of total liabilities starting in 2019, significantly increasing the overall leverage profile before decreasing gradually.

Debt to Capital

The debt to capital ratio was consistently low and stable, around 0.11 to 0.09, until early 2020. Post-May 2020, there was a sharp increase to approximately 0.52, followed by a steady decrease to 0.37 by October 2022. This mirrors the debt to equity trend, indicating increased debt financing during the 2020 period and then a reduction thereafter.

Debt to Capital (Including Operating Lease Liability)

Similar to the debt to capital ratio but higher in value, this ratio displayed a distinct increase from below 0.12 to the range of 0.5-0.7 starting around mid-2019 through 2020, before declining slightly and stabilizing around 0.58 towards the end of the observed period. This reinforces the increasing significance of lease liabilities on the company’s capital structure during this timeframe.

Debt to Assets

This ratio was notably stable and low, around 0.07 to 0.03, until early 2020. Thereafter, it rose sharply to roughly 0.29 by May 2020, then declined gradually, ending near 0.19 in October 2022. The increase reflects an expansion in debt relative to total assets during the 2020 period, with partial normalization in subsequent quarters.

Debt to Assets (Including Operating Lease Liability)

This measure showed a substantial jump from about 0.07 to over 0.37 in mid-2019 and further increased to near 0.59 in May 2020. Following this peak, the ratio declined slowly to around 0.44 by the last period. This pattern indicates growing leverage when including operating leases in asset calculations, highlighting their material impact on balance sheet risk exposure.

Financial Leverage

The financial leverage ratio started near 2.0 in early periods and remained relatively stable until early 2019. A significant increase began in 2019, peaking at over 4.16 in October 2020. After this peak, it steadily declined to about 3.16 by October 2022. This surge and subsequent decline signify changes in the capital structure with increased use of debt and lease liabilities, followed by partial deleveraging steps.

The analysis of the financial data reveals several notable trends in debt, equity, and leverage ratios over the examined periods.

Total Debt

Total debt remained relatively stable from April 2017 through February 2020, fluctuating marginally around approximately 396,000 to 397,000 thousand US dollars. However, starting in May 2020, there was a significant and abrupt increase in total debt to over 3,090,614 thousand US dollars, marking a nearly eightfold rise compared to prior periods. This elevated level of debt was maintained through August 2020 before declining significantly to approximately 2,512,000 thousand US dollars by October 2020. Subsequently, total debt stabilized around 2,452,000 to 2,455,000 thousand US dollars through the final period in October 2022.

Stockholders’ Equity

Stockholders’ equity showed a general upward trend throughout the entire period. Starting at approximately 2,777,746 thousand US dollars in April 2017, equity increased steadily with minor fluctuations to reach about 3,359,249 thousand US dollars by February 2020. Following a decline during May and August 2020 to around 2,817,392 and 2,867,199 thousand US dollars respectively, equity recovered strongly thereafter, rising consistently to exceed 4,147,000 thousand US dollars by October 2022. This indicates a longer-term strengthening in the equity position despite short-term volatility.

Debt to Equity Ratio

The debt to equity ratio exhibited a low and stable pattern under 0.15 for the initial periods up to February 2020, reflecting conservative leverage relative to equity. A sharp spike occurred in May 2020, with the ratio rising dramatically to approximately 1.10, attributed to the sudden surge in debt combined with a concurrent decline in equity. Subsequently, the ratio decreased steadily to around 0.59 by the end of the data series in October 2022. This decrease signals a reduction in leverage risk and an improvement in the capital structure, though the ratio remains notably higher than the pre-2020 range.

In summary, the data indicates a pronounced financial disruption around the early part of 2020, marked by a sudden increase in debt and a dip in equity, likely reflecting external factors affecting the company’s financial strategy or operating conditions. Following this period, the company gradually deleveraged while restoring and expanding its equity base, resulting in a materially stronger equity position and a more moderate debt burden by late 2022.

The analysis of the financial metrics over the observed periods reveals significant shifts in the company's leverage and equity positions.

Total Debt (including operating lease liability)

The total debt remained relatively stable between April 2017 and February 2019, fluctuating slightly around 396,000 thousand US dollars. However, there was a marked and sudden increase beginning in May 2019, when debt surged to over 3,360,000 thousand US dollars and continued at elevated levels thereafter. This spike indicates a substantial increase in debt obligations within a short timeframe, with the highest values observed around the mid-2020 period above 6,200,000 thousand US dollars. Subsequently, the debt level showed a gradual decline but remained significantly higher than pre-May 2019 levels, staying above 5,600,000 thousand US dollars until the latest period in October 2022.

Stockholders’ Equity

Stockholders’ equity generally demonstrated a consistent upward trend throughout the periods analyzed. Starting at approximately 2,777,746 thousand US dollars in April 2017, equity increased steadily and reached above 3,300,000 thousand US dollars by early 2020. Despite a slight decrease around May 2020, equity rebounded sharply to exceed 4,147,000 thousand US dollars by the end of 2022. This growth in equity signals an overall strengthening of the company's net asset base.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio remained low and stable from April 2017 through February 2019, maintaining values approximately between 0.12 and 0.14, reflecting a conservative leverage position. Starting May 2019, the ratio jumped sharply to around 1.03, in line with the noted increase in total debt. It further escalated to peak at 2.23 in May 2020, implying that total debt more than doubled shareholders' equity during that peak period. Following this peak, the leverage ratio gradually declined to approximately 1.36 by October 2022, indicating a slow deleveraging but still a considerably higher leverage level compared to pre-2019.

Overall, the data points to a phase of significant debt accumulation beginning in mid-2019, coinciding with a rise in leverage ratio while stockholders' equity also increased but at a more moderate pace. This pattern suggests a strategic decision or external circumstance leading to increased borrowing. Despite the high leverage, the equity base continued to strengthen, which could mitigate some risk associated with the increased debt. The partial deleveraging observed in recent periods may reflect efforts to balance the capital structure moving forward.

The analysis of the financial metrics over the reported periods reveals several noteworthy trends regarding the company's debt levels, capital structure, and leverage ratio.

Total Debt

The total debt remained relatively stable from April 2017 until February 2020, fluctuating marginally around approximately 396,600 to 397,300 thousand US dollars. A significant increase occurred in May 2020, when the total debt jumped sharply to over 3,090,614 thousand US dollars, maintaining a similarly high level through August 2020. Following this peak, total debt decreased substantially to values slightly above 2,500,000 thousand US dollars from October 2020 onward, stabilizing around 2,450,000 thousand US dollars toward the end of the observed periods in late 2022. This pattern suggests a major debt issuance around mid-2020, followed by a strategic reduction or repayment in subsequent quarters.

Total Capital

Total capital demonstrated a gradual increasing trend from around 3,174,357 thousand US dollars in April 2017 to about 3,672,140 thousand in February 2020. However, a pronounced increase occurred in May 2020, with total capital surging to nearly 5,908,006 thousand US dollars and continuing to rise modestly through August 2020. Afterward, the capital base fluctuated but remained well above pre-2020 levels, ranging between approximately 5,500,000 and 6,600,000 thousand US dollars over the remaining periods. This increase aligns temporally with the rise in total debt, indicating a significant capital restructuring or equity infusion around mid-2020.

Debt to Capital Ratio

The debt-to-capital ratio was stable and low, staying around 0.11 to 0.12 from early 2017 through early 2020, reflecting a conservative leverage profile. In May 2020, this ratio sharply increased to 0.52, more than quadrupling the previous levels, coinciding with the spike in total debt and capital. Subsequently, the ratio steadily declined across the following quarters, settling near 0.37 by late 2022. Although the leverage reduced from the mid-2020 peak, it remained significantly higher than pre-2020 levels, suggesting a sustained adoption of a higher debt component within the company’s capital structure.

In summary, the company exhibited consistent leverage and capital levels until early 2020, after which it experienced a notable restructuring event characterized by a substantial increase in debt and capital. The leverage ratio spiked sharply but then gradually decreased, indicating partial deleveraging. Despite this reduction, the leverage remained elevated relative to historical figures, signaling a potentially altered financial strategy involving higher indebtedness through the end of the presented periods.

The analysis reveals notable shifts in the financial leverage and capital structure over the observed periods. Initially, from April 2017 through February 2019, both total debt and total capital show relatively stable and moderate levels, with total debt approximately ranging around 397 million US dollars and total capital increasing gradually from approximately 3.17 billion to 3.62 billion US dollars. During this time, the debt to capital ratio remains steady at around 0.11 to 0.12, indicating low leverage and a conservative capital structure.

A significant change is observed starting from May 2019. Total debt experiences a pronounced jump, rising sharply to over 3.36 billion US dollars in the May 2019 period and maintaining elevated levels above 3.4 billion in subsequent quarters. This abrupt increase in debt corresponds closely with a similar expansion in total capital, which doubles from approximately 3.6 billion to over 6.6 billion US dollars between February 2019 and May 2019. The cause of this sudden increase could pertain to a major financing event or acquisition, as capital structure expands substantially within a short timeframe.

Following this surge, total debt continues to grow significantly, peaking at around 6.29 billion US dollars in May 2020, while total capital also escalates to about 9.11 billion US dollars during the same period. Correspondingly, the debt to capital ratio increases sharply from about 0.09 in February 2019 to approximately 0.69 by May 2020, indicating a substantial rise in leverage. This ratio stabilizes somewhat after May 2020 but remains elevated, fluctuating between 0.58 and 0.69 through to October 2022. This higher leverage range suggests a strategic reliance on debt financing compared to prior periods, potentially reflecting capital-intensive investments or changes in financial policy.

From mid-2020 onwards, total debt shows some volatility but tends to decrease gradually from its peak, settling around 5.6 to 5.7 billion US dollars in late 2021 and 2022, whereas total capital continues a slow upward trend, reaching approximately 9.86 billion US dollars by October 2022. The resulting debt to capital ratio gently declines from its peak but remains elevated relative to pre-2019 levels, stabilizing near 0.58. This pattern implies ongoing management of debt levels alongside growing capital but overall maintaining a higher leverage profile than in the earlier years.

Total Debt

Stable around 397 million US dollars until early 2019, then marked by a sharp increase to over 3 billion US dollars, further growing to peaks above 6 billion, followed by a moderate decline to around 5.7 billion by late 2022.

Total Capital

Steadily increased from about 3.17 billion to 3.62 billion US dollars until early 2019, then doubled abruptly to beyond 6.6 billion, continuing to climb gradually to nearly 9.86 billion by late 2022.

Debt to Capital Ratio

Maintained a low, stable range near 0.11-0.12 until early 2019, then surged sharply to a peak around 0.69 by mid-2020, subsequently stabilizing around 0.58 through the end of the period.

Overall, the financial data demonstrates a clear structural shift in capital management after early 2019, characterized by significantly increased debt levels and a corresponding rise in leverage. This suggests a strategic repositioning toward greater debt utilization, possibly to finance major corporate actions or expansion initiatives. Despite fluctuations, the company has maintained a consistent capital base, with a trend toward gradual growth after the initial spike, indicating ongoing capital deployment to support its operational or strategic objectives. The elevated but stable debt to capital ratio in recent periods highlights a persistent commitment to a higher leverage model relative to previous years.

Total Debt

Over the analyzed periods, total debt exhibited relative stability from early 2017 through early 2020, remaining consistently around 396,000 thousand US dollars initially and then slightly declining to approximately 312,000 thousand US dollars by early 2020. However, a notable and substantial increase occurred starting in May 2020, where total debt surged dramatically to over 3,090,000 thousand US dollars. This elevated level persisted through 2020 and early 2021 before declining somewhat to around 2,450,000 thousand US dollars by late 2022. Despite this reduction, debt levels remained significantly higher than in the pre-2020 periods.

Total Assets

Total assets maintained an upward trend over the entire period. Initially fluctuating between approximately 5,500,000 and 6,200,000 thousand US dollars from 2017 to early 2019, a pronounced increase began by mid-2019, peaking at about 11,320,000 thousand US dollars in mid-2020. Subsequently, total assets continued to grow steadily, reaching a peak near 13,900,000 thousand US dollars by late 2021. This level slightly declined but remained relatively stable, around 13,100,000 thousand US dollars toward the end of the examined period in late 2022.

Debt to Assets Ratio

Reflecting the patterns seen in total debt and assets, the debt to assets ratio remained quite low and stable from 2017 through early 2020, fluctuating between roughly 0.06 and 0.07 before declining to about 0.03 by early 2020. A marked increase appeared in mid-2020, where the ratio surged to a peak of approximately 0.29, indicating a sharp rise in leverage relative to assets. Thereafter, the ratio gradually declined but remained elevated compared to the pre-2020 years, holding steady between 0.18 and 0.20 through late 2022.

In summary, the data indicates a significant shift around 2020, where both total debt and total assets increased substantially, with debt growing at a faster rate, as reflected in the sharp rise in the debt to assets ratio. This shift suggests an increase in financial leverage during and following this period. Despite some reduction in debt after the peak, leverage remains considerably higher than in previous years. Total assets have generally trended upward across the entire timeframe, supporting growth or expansion activities, while the increase in debt may reflect increased borrowing to finance such initiatives or to address other financial needs.

Total Debt (including operating lease liability)

The total debt remained relatively stable from April 2017 through February 2019, fluctuating slightly around the 396,000 to 397,000 thousand US dollar range. Beginning in May 2019, there was a significant and sudden increase in debt levels, peaking at around 6,293,215 thousand US dollars in May 2020. After this peak, the debt shows a steady decline until January 2021, followed by moderate fluctuations staying within the 5,600,000 to 5,700,000 thousand US dollar range through October 2022.

Total Assets

Total assets exhibit a gradual upward trend from about 5,552,975 thousand US dollars in April 2017 to around 6,233,767 thousand US dollars in November 2018, with minor periodic variations. Starting from May 2019, the assets jump sharply, nearly doubling to over 10,728,046 thousand US dollars by May 2020. Following this, assets continue to increase at a more moderate pace, reaching a peak of approximately 13,915,734 thousand US dollars in October 2021. After this point, total assets show a slight downward trend, decreasing to roughly 13,100,095 thousand US dollars by October 2022.

Debt to Assets Ratio (including operating lease liability)

From April 2017 until February 2019, the debt to assets ratio remained consistently low and stable, around 0.05 to 0.07. Beginning in May 2019, the ratio increased dramatically to about 0.37 and stayed steady through February 2020. Subsequently, there was a sharp increase, peaking at around 0.59 in May 2020, aligning with the peak in debt. Afterward, the ratio declined steadily up through January 2022, settling around 0.41 to 0.44 during the remainder of the observed period. This indicates a significant rise in leverage starting mid-2019, followed by partial deleveraging and stabilization.

The analysis of the quarterly financial data reveals several noteworthy trends related to total assets, stockholders’ equity, and financial leverage over the observed periods.

Total Assets

Total assets exhibited a general upward trend from the beginning of the period to the end. Starting at approximately $5,552 million, the total assets showed moderate fluctuations initially, with slight increases and decreases until early 2019. From this point onward, there was a marked acceleration in growth, peaking near $13,958 million in late 2021. Subsequently, there is a mild decrease and stabilization around $13,100 million towards the end of the dataset. Overall, total assets more than doubled over the period, indicating significant growth in the company's asset base.

Stockholders’ Equity

Stockholders' equity grew steadily throughout the periods, starting at about $2,778 million and showing consistent increases with few exceptions. Notably, there was a decline around May 2020, when equity dropped to roughly $2,817 million, likely reflecting impacts during that quarter. Thereafter, equity resumed its upward trajectory, reaching a peak close to $4,147 million by late 2022. This steady growth in equity suggests ongoing retained earnings and/or capital injections, contributing to a stronger shareholder base.

Financial Leverage

Financial leverage experienced fluctuations, with values hovering around 2.0 in the early periods, indicating a moderate ratio of assets to equity. Starting in 2019, leverage increased sharply, peaking at approximately 4.16 in late 2020, indicating that the company took on relatively more liabilities compared to equity. After this peak, a gradual decline ensued, with leverage reducing to about 3.16 by the final quarter. The higher leverage levels during the middle of the dataset may reflect increased borrowing or other liabilities used to finance asset growth, while the subsequent decline points to a moderated approach to leverage.

In summary, the company displayed robust asset growth alongside growing equity, with financial leverage rising to a peak and then gradually decreasing. The patterns suggest a phase of aggressive asset expansion potentially funded by increased liabilities, followed by consolidation and deleveraging towards the end of the period. The equity growth indicates reinforcement of the company's financial foundation, offsetting some risks associated with elevated leverage during the middle quarters.