Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ross Stores Inc., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ross Stores Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ross Stores Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ross Stores Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ross Stores Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Ross Stores Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Gross Profit Margin
Ross Stores Inc., gross profit margin 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) | |||||||
| Gross profit | 5,207,337) | 2,692,991) | 4,502,886) | 4,257,264) | 4,092,094) | 3,693,052) | |
| Sales | 18,916,244) | 12,531,565) | 16,039,073) | 14,983,541) | 14,134,732) | 12,866,757) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 27.53% | 21.49% | 28.07% | 28.41% | 28.95% | 28.70% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 43.81% | 42.03% | 39.57% | 40.99% | — | — | |
| Home Depot Inc. | 33.63% | 33.95% | 34.09% | 34.34% | — | — | |
| Lowe’s Cos. Inc. | 33.30% | 33.01% | 31.80% | 32.12% | — | — | |
| TJX Cos. Inc. | 28.50% | 23.66% | 28.46% | 28.59% | — | — | |
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
Gross profit margin = 100 × Gross profit ÷ Sales
= 100 × 5,207,337 ÷ 18,916,244 = 27.53%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Ross Stores Inc. gross profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Operating Profit Margin
Ross Stores Inc., operating profit margin 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) | |||||||
| Operating earnings | 2,332,868) | 189,710) | 2,146,182) | 2,040,714) | 2,048,396) | 1,802,644) | |
| Sales | 18,916,244) | 12,531,565) | 16,039,073) | 14,983,541) | 14,134,732) | 12,866,757) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 12.33% | 1.51% | 13.38% | 13.62% | 14.49% | 14.01% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | 2.38% | 5.30% | 5.93% | 5.18% | — | — | |
| Home Depot Inc. | 15.24% | 13.84% | 14.37% | 14.35% | — | — | |
| Lowe’s Cos. Inc. | 12.56% | 10.77% | 8.75% | 5.63% | — | — | |
| TJX Cos. Inc. | 9.79% | 1.81% | 10.59% | 10.82% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.44% | 7.38% | 8.11% | 7.68% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | 8.07% | 8.16% | 5.53% | 7.81% | — | — | |
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
Operating profit margin = 100 × Operating earnings ÷ Sales
= 100 × 2,332,868 ÷ 18,916,244 = 12.33%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Ross Stores Inc. operating profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Net Profit Margin
Ross Stores Inc., net profit margin 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) | |
| Sales | 18,916,244) | 12,531,565) | 16,039,073) | 14,983,541) | 14,134,732) | 12,866,757) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 9.11% | 0.68% | 10.36% | 10.59% | 9.64% | 8.69% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | -0.53% | 7.10% | 5.53% | 4.13% | — | — | |
| Home Depot Inc. | 10.87% | 9.74% | 10.20% | 10.28% | — | — | |
| Lowe’s Cos. Inc. | 8.77% | 6.51% | 5.93% | 3.25% | — | — | |
| TJX Cos. Inc. | 6.76% | 0.28% | 7.84% | 7.85% | — | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 3.14% | 7.21% | 6.58% | 5.63% | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | 4.64% | 8.35% | 4.16% | 6.11% | — | — | |
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
Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 1,722,589 ÷ 18,916,244 = 9.11%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Ross Stores Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Return on Equity (ROE)
Ross Stores Inc., ROE 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) | |
| Stockholders’ equity | 4,060,050) | 3,290,640) | 3,359,249) | 3,305,746) | 3,049,308) | 2,748,017) | |
| Profitability Ratio | |||||||
| ROE1 | 42.43% | 2.59% | 49.44% | 48.02% | 44.69% | 40.67% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | -1.86% | 24.13% | 22.84% | 18.67% | — | — | |
| Home Depot Inc. | — | 390.00% | — | — | — | — | |
| Lowe’s Cos. Inc. | — | 406.05% | 217.09% | 63.50% | — | — | |
| TJX Cos. Inc. | 54.69% | 1.55% | 55.01% | 60.61% | — | — | |
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 17.48% | 35.05% | 40.86% | 40.77% | — | — | |
| ROE, Industry | |||||||
| Consumer Discretionary | 19.29% | 30.07% | 18.30% | 31.39% | — | — | |
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
ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 1,722,589 ÷ 4,060,050 = 42.43%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Ross Stores Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Return on Assets (ROA)
Ross Stores Inc., ROA 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) | |
| Total assets | 13,640,256) | 12,717,867) | 9,348,367) | 6,073,691) | 5,722,051) | 5,309,351) | |
| Profitability Ratio | |||||||
| ROA1 | 12.63% | 0.67% | 17.77% | 26.14% | 23.82% | 21.05% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | -0.59% | 7.93% | 6.64% | 5.14% | — | — | |
| Home Depot Inc. | 22.86% | 18.23% | 21.94% | 25.27% | — | — | |
| Lowe’s Cos. Inc. | 18.91% | 12.49% | 10.85% | 6.71% | — | — | |
| TJX Cos. Inc. | 11.53% | 0.29% | 13.55% | 21.36% | — | — | |
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.19% | 9.17% | 9.20% | 8.83% | — | — | |
| ROA, Industry | |||||||
| Consumer Discretionary | 4.34% | 7.05% | 3.37% | 5.62% | — | — | |
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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,722,589 ÷ 13,640,256 = 12.63%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Ross Stores Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |