Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Ross Stores Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
- Gross Profit Margin
- The gross profit margin exhibited a generally stable level around 28.7% from early 2017 through early 2020, indicating consistent cost control relative to revenue during that period. However, a sharp decline occurred starting in the quarter ending May 2020, dropping to a low near 21.5% by early 2021. Subsequently, the margin partially recovered and stabilized in the mid-20% range through the end of 2022, though it remained below pre-2020 levels.
- Operating Profit Margin
- Operating profit margin followed a similar pattern to gross profit margin, maintaining a range roughly between 13.9% and 14.5% from 2017 to early 2020. There was a pronounced decline beginning in May 2020, reaching a low of approximately 1.5% by January 2021, reflecting significantly reduced operational efficiency or higher operating expenses relative to sales. A recovery was evident after this trough, with margins improving to over 10% by late 2022, though still below the pre-2020 period.
- Net Profit Margin
- Net profit margin demonstrated a modest upward trend from 8.77% in early 2017, peaking near 10.7% by late 2018 and early 2019. A notable contraction occurred during 2020, with margins falling sharply to under 1% by early 2021. Following this decline, net margins recovered gradually, reaching approximately 7.7% by late 2022, indicating a partial restoration of profitability but not a full return to earlier levels.
- Return on Equity (ROE)
- ROE showed strong performance from 2017 through late 2019, climbing steadily from around 41% to above 50%, reflecting effective utilization of shareholder equity to generate profits. The onset of 2020 marked a significant downturn, with ROE plummeting to approximately 2.6% by early 2021, indicative of substantial profit erosion or increased equity levels not matched by net income. A recovery trend is apparent thereafter, with ROE increasing to mid-30% by the end of 2022, though still below peak historical figures.
- Return on Assets (ROA)
- ROA generally improved from about 20.7% in early 2017 to a peak of around 26.1% by early 2019, illustrating efficient asset utilization. Following this period, ROA experienced a steep decline starting in 2020, hitting a low near 0.7% by early 2021, consistent with overall profitability challenges. Recovery ensued, with ROA climbing back above 10% by late 2022, yet it did not reach prior highs, suggesting ongoing challenges in asset productivity relative to previous years.
Return on Sales
Return on Investment
Gross Profit Margin
Ross Stores Inc., gross profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross profit (loss) | 1,141,443) | 1,183,474) | 1,136,654) | 1,247,013) | 1,248,537) | 1,394,103) | 1,317,684) | 1,092,627) | 1,043,090) | 604,592) | (47,318) | 1,189,208) | 1,082,685) | 1,136,019) | 1,094,974) | 1,117,644) | 1,002,277) | 1,070,943) | 1,066,400) | 1,145,224) | 959,746) | 1,010,661) | 976,463) | |||||||
| Sales | 4,565,489) | 4,583,009) | 4,333,100) | 5,020,649) | 4,574,541) | 4,804,974) | 4,516,080) | 4,249,671) | 3,754,509) | 2,684,712) | 1,842,673) | 4,413,445) | 3,849,117) | 3,979,869) | 3,796,642) | 4,107,388) | 3,549,608) | 3,737,926) | 3,588,619) | 4,067,806) | 3,328,894) | 3,431,603) | 3,306,429) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | 25.45% | 26.01% | 26.83% | 27.53% | 27.85% | 27.98% | 26.69% | 21.49% | 21.97% | 22.12% | 23.86% | 28.07% | 28.17% | 28.19% | 28.21% | 28.41% | 28.67% | 28.81% | 29.01% | 28.95% | 28.85% | 28.78% | 28.71% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 46.24% | 45.53% | 44.73% | 43.81% | 43.04% | 42.65% | 42.14% | 42.03% | 41.31% | 40.68% | 40.01% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 33.51% | 33.53% | 33.58% | 33.63% | 33.72% | 33.72% | 33.94% | 33.95% | 34.03% | 34.10% | 34.06% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 33.38% | 33.33% | 33.49% | 33.30% | 33.06% | 32.97% | 33.06% | 33.01% | 32.94% | 32.89% | 32.23% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 27.92% | 28.03% | 28.45% | 28.50% | 28.78% | 28.91% | 27.61% | 23.66% | 23.97% | 23.61% | 25.04% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross profit (loss)Q3 2023
+ Gross profit (loss)Q2 2023
+ Gross profit (loss)Q1 2023
+ Gross profit (loss)Q4 2022)
÷ (SalesQ3 2023
+ SalesQ2 2023
+ SalesQ1 2023
+ SalesQ4 2022)
= 100 × (1,141,443 + 1,183,474 + 1,136,654 + 1,247,013)
÷ (4,565,489 + 4,583,009 + 4,333,100 + 5,020,649)
= 25.45%
2 Click competitor name to see calculations.
- Sales Trend
- Sales generally exhibit a cyclical pattern with noticeable peaks and troughs across the quarters, showing an overall upward trajectory from 2017 through 2022. Early quarters in 2017 and 2018 display steady sales between approximately $3.3 billion and $4.1 billion. Following a decline in May 2020 to $1.8 billion, likely due to extraordinary conditions, sales recovered sharply by early 2021, reaching levels around $4.5 billion to $5.0 billion in subsequent quarters. This rebound indicates strong recovery and growth momentum heading into 2022.
- Gross Profit (Loss) Analysis
- Gross profit fluctuates somewhat in absolute terms but generally follows sales trends. Positive gross profits are observed consistently from 2017 through early 2020, with values ranging roughly between $950 million and $1.4 billion. A sharp decline to a negative gross profit of approximately -$47 million occurs in May 2020, coinciding with the sales dip, which suggests significant operational challenges during this period. Post this downturn, gross profit recovers to over $1 billion from the latter part of 2020 onwards, though the values do not consistently reach the highs seen prior to the dip. The overall trend reflects temporary disruption with subsequent stabilization and recovery.
- Gross Profit Margin Insights
- The gross profit margin shows a decreasing trend over the timespan considered. Margins start near 28.7% in 2017 and maintain levels just under 29% through early 2020. The margin falls sharply to around 23.9% in the May 2020 quarter, followed by further decreases to levels near 22%, marking a significant erosion of profitability during this period. After this low, margins exhibit a gradual recovery, rising to a peak near 28% in mid to late 2021, before trending downward again to approximately 25.5% by the end of 2022. These fluctuations suggest the company faced cost pressures or pricing challenges particularly in 2020, with partial restoration of profitability margins thereafter, though not fully recovering to pre-2020 levels.
- Summary of Observations
- The overall performance reveals resilience through a challenging period around early 2020, with notable impacts on sales volume and gross profitability. The company experienced a strong recovery in sales and gross profit following this disturbance, although gross profit margins have not entirely returned to historical highs. The downward trend in margin towards late 2022 might indicate increased cost challenges or competitive pricing pressures. The financial data point to a business adapting to adverse conditions with a moderate restoration of growth, but also highlight ongoing margin management issues that could warrant further analysis and operational focus.
Operating Profit Margin
Ross Stores Inc., operating profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Operating earnings (loss) | 448,076) | 516,411) | 467,158) | 491,146) | 522,776) | 676,315) | 642,631) | 402,003) | 165,233) | 85,097) | (462,623) | 587,329) | 478,080) | 544,049) | 536,724) | 541,675) | 440,700) | 516,362) | 541,977) | 591,918) | 442,449) | 512,385) | 501,644) | |||||||
| Sales | 4,565,489) | 4,583,009) | 4,333,100) | 5,020,649) | 4,574,541) | 4,804,974) | 4,516,080) | 4,249,671) | 3,754,509) | 2,684,712) | 1,842,673) | 4,413,445) | 3,849,117) | 3,979,869) | 3,796,642) | 4,107,388) | 3,549,608) | 3,737,926) | 3,588,619) | 4,067,806) | 3,328,894) | 3,431,603) | 3,306,429) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | 10.39% | 10.79% | 11.52% | 12.33% | 12.37% | 10.89% | 8.52% | 1.51% | 2.95% | 5.38% | 8.14% | 13.38% | 13.35% | 13.37% | 13.40% | 13.62% | 13.99% | 14.21% | 14.49% | 14.49% | 14.24% | 14.11% | 13.97% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 4.76% | 3.29% | 2.54% | 2.38% | 2.58% | 3.15% | 4.12% | 5.30% | 6.18% | 6.68% | 6.63% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 15.33% | 15.30% | 15.20% | 15.24% | 15.10% | 14.79% | 14.70% | 13.84% | 14.01% | 13.99% | 13.85% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 10.74% | 12.76% | 12.72% | 12.56% | 12.36% | 11.79% | 11.55% | 10.77% | 10.64% | 10.53% | 9.30% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 9.76% | 9.77% | 10.18% | 9.79% | 9.55% | 9.32% | 7.05% | 1.81% | 3.13% | 3.26% | 5.86% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Operating earnings (loss)Q3 2023
+ Operating earnings (loss)Q2 2023
+ Operating earnings (loss)Q1 2023
+ Operating earnings (loss)Q4 2022)
÷ (SalesQ3 2023
+ SalesQ2 2023
+ SalesQ1 2023
+ SalesQ4 2022)
= 100 × (448,076 + 516,411 + 467,158 + 491,146)
÷ (4,565,489 + 4,583,009 + 4,333,100 + 5,020,649)
= 10.39%
2 Click competitor name to see calculations.
The quarterly financial data reveals several important trends over the analyzed periods. Sales and operating earnings demonstrate cyclical fluctuations with notable impacts during certain quarters, while the operating profit margin exhibits volatility influenced by these earnings and sales dynamics.
- Sales Trends
- Sales consistently fluctuate between quarters, with a general upward trajectory observable when comparing early and later periods. Starting from approximately 3.3 billion USD, sales reach peaks exceeding 5 billion USD in the most recent quarters. Seasonal variations are apparent, with spikes typically occurring around the beginning of each year and mid-year periods. The steep dip in sales in early 2020 correlates with broader market disruptions, followed by a gradual recovery and subsequent growth through 2021. Despite some variability, the overall sales figures maintain a positive momentum.
- Operating Earnings (Loss)
- Operating earnings similarly show a pattern of volatility corresponding to sales trends but with more pronounced fluctuations. Earnings initially hover around the range of 440 million to 590 million USD. A significant negative deviation is observed in early 2020, with a substantial loss exceeding 460 million USD, clearly reflecting a distress period. Following this loss, earnings recover incrementally over the next quarters, stabilizing around the 400 million to 670 million USD range by 2021. Recent quarters show a slight downward adjustment but still maintain positive earnings compared to the earlier loss period.
- Operating Profit Margin
- The operating profit margin remains relatively stable around the 13-14% mark through early periods, indicating efficient operational performance despite fluctuating sales and earnings. This margin takes a notable dip during the early 2020 quarters, falling sharply to approximately 8% and bottoming out near 1.5% subsequently. This reduction aligns with the significant operating loss and reduced sales during the same timeframe. Recovery is observed starting mid-2020 through 2021, with margins recovering to above 10% by late 2021. Recent data hints at a minor declining trend in margin but still significantly above the low points observed during the crisis period.
- Overall Insights
- The data suggests that the company experienced a major operational disruption around early 2020, leading to a temporary loss and sharp margin contraction amid declining sales. Post-crisis quarters demonstrate resilience with a clear recovery phase as sales volumes rise and profitability improves. Seasonal sales patterns continue to influence quarterly performance, while operating margins and earnings adjust to underlying economic conditions and management strategies. Recent quarters show stabilization but also a need for attentiveness to the slight reductions in profitability margins.
Net Profit Margin
Ross Stores Inc., net profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net earnings (loss) | 342,036) | 384,517) | 338,445) | 366,822) | 385,030) | 494,258) | 476,479) | 237,980) | 131,197) | 22,047) | (305,842) | 456,133) | 370,932) | 412,721) | 421,142) | 441,693) | 338,108) | 389,404) | 418,252) | 450,747) | 274,449) | 316,539) | 321,018) | |||||||
| Sales | 4,565,489) | 4,583,009) | 4,333,100) | 5,020,649) | 4,574,541) | 4,804,974) | 4,516,080) | 4,249,671) | 3,754,509) | 2,684,712) | 1,842,673) | 4,413,445) | 3,849,117) | 3,979,869) | 3,796,642) | 4,107,388) | 3,549,608) | 3,737,926) | 3,588,619) | 4,067,806) | 3,328,894) | 3,431,603) | 3,306,429) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | 7.74% | 7.97% | 8.46% | 9.11% | 8.78% | 7.73% | 5.71% | 0.68% | 2.39% | 4.25% | 6.63% | 10.36% | 10.47% | 10.46% | 10.47% | 10.59% | 10.68% | 10.41% | 10.13% | 9.64% | 8.93% | 8.87% | 8.77% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 3.62% | 2.43% | 0.82% | -0.53% | 2.25% | 2.39% | 4.48% | 7.10% | 5.73% | 6.64% | 6.42% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 10.87% | 10.88% | 10.83% | 10.87% | 10.79% | 10.55% | 10.45% | 9.74% | 9.94% | 9.91% | 9.79% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 6.97% | 8.84% | 8.85% | 8.77% | 8.63% | 7.41% | 7.23% | 6.51% | 6.29% | 7.12% | 6.17% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 6.90% | 6.77% | 6.69% | 6.76% | 5.85% | 5.81% | 4.00% | 0.28% | 2.24% | 2.11% | 4.57% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net earnings (loss)Q3 2023
+ Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022)
÷ (SalesQ3 2023
+ SalesQ2 2023
+ SalesQ1 2023
+ SalesQ4 2022)
= 100 × (342,036 + 384,517 + 338,445 + 366,822)
÷ (4,565,489 + 4,583,009 + 4,333,100 + 5,020,649)
= 7.74%
2 Click competitor name to see calculations.
The financial data exhibits several important trends across the analyzed periods. Sales demonstrate a generally increasing trajectory, with some fluctuations. From early 2017 until early 2020, sales increased steadily, peaking in February 2020. However, a significant decline is observed in May 2020, likely reflecting external market disruptions, followed by a robust recovery and new peaks toward the end of the period in 2021 and early 2022.
Net earnings follow a pattern that broadly correlates with sales trends but show greater volatility. There is a notable peak in early 2018 and early 2020, with a marked negative value in May 2020, indicating a substantial loss during that quarter. Subsequent quarters reflect a recovery in net earnings, with values returning to positive and rising levels, though they do not continuously surpass previous highs. This suggests the company faced a significant but temporary financial setback around mid-2020.
The net profit margin percentage supports these observations. It increases steadily from early 2017 through early 2020, peaking around 10.68%. A sharp decrease occurs in mid-2020, consistent with the downturn in net earnings and sales. After this drop, the profit margin remains below previous peak levels for several quarters but then starts to recover gradually, improving through 2021 and sustaining above 7% into late 2022. The partial recovery in margins indicates a return to more profitable operations albeit not at pre-2020 peak profitability.
Overall, the data reflects strong sales growth and profitability up to early 2020, a significant mid-2020 disruption with marked declines in earnings and profit margin, and a subsequent phase of recovery with sales reaching new highs and improving profitability, though some volatility remains. This suggests resilience and capacity to rebound after a period of financial stress.
- Sales Trend
- Generally increasing with a sharp dip in mid-2020 followed by a robust recovery creating new sales highs through 2021 and early 2022.
- Net Earnings Trend
- Volatile with peaks early in the period, a severe loss in May 2020, and gradual recovery thereafter but no consistent surpassing of prior peaks.
- Net Profit Margin Trend
- Increasing steadily to peak before mid-2020, sharp decline in mid-2020, followed by gradual recovery with margins stabilizing above 7% in later periods.
- Insights
- The mid-2020 period marks a significant financial disruption, possibly due to external factors, with a strong rebound in sales and margins indicating operational resilience.
Return on Equity (ROE)
Ross Stores Inc., ROE calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net earnings (loss) | 342,036) | 384,517) | 338,445) | 366,822) | 385,030) | 494,258) | 476,479) | 237,980) | 131,197) | 22,047) | (305,842) | 456,133) | 370,932) | 412,721) | 421,142) | 441,693) | 338,108) | 389,404) | 418,252) | 450,747) | 274,449) | 316,539) | 321,018) | |||||||
| Stockholders’ equity | 4,147,000) | 4,126,951) | 4,053,897) | 4,060,050) | 3,983,217) | 3,903,986) | 3,652,821) | 3,290,640) | 3,019,037) | 2,867,199) | 2,817,392) | 3,359,249) | 3,276,779) | 3,296,264) | 3,267,526) | 3,305,746) | 3,187,163) | 3,184,610) | 3,130,288) | 3,049,308) | 2,858,519) | 2,839,884) | 2,777,746) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | 34.53% | 35.74% | 39.09% | 42.43% | 40.01% | 34.32% | 23.75% | 2.59% | 10.05% | 18.95% | 33.15% | 49.44% | 50.25% | 48.95% | 48.67% | 48.02% | 50.09% | 48.13% | 46.64% | 44.69% | 42.42% | 41.65% | 41.33% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 10.97% | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | 24.13% | 21.78% | 25.64% | 26.04% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 1,317.03% | 7,124.47% | — | — | 1,539.90% | 736.64% | 844.74% | 390.00% | 813.68% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | 1,532.36% | 406.05% | 131.77% | 131.40% | 266.43% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 60.02% | 62.26% | 59.63% | 54.69% | 41.40% | 39.21% | 24.63% | 1.55% | 13.47% | 15.26% | 35.54% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q3 2023 Calculation
ROE = 100
× (Net earnings (loss)Q3 2023
+ Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022)
÷ Stockholders’ equity
= 100 × (342,036 + 384,517 + 338,445 + 366,822)
÷ 4,147,000 = 34.53%
2 Click competitor name to see calculations.
The financial data reveals several noteworthy trends over the covered periods. Net earnings exhibit considerable variability, with multiple peaks and troughs observed. Notably, there is a significant surge in net earnings in early 2018 followed by a general downward adjustment, culminating in a sharp decline in May 2020. After this trough, net earnings gradually recover, reaching high levels again by mid to late 2021, before showing some fluctuations towards the end of the period.
Stockholders’ equity demonstrates a consistent upward trajectory throughout the periods, reflecting steady growth in the company's net assets. Even during times of earnings volatility, such as in 2020, stockholders' equity maintains an increasing trend, suggesting ongoing capital accumulation or retained earnings, despite temporary setbacks in profitability.
Return on equity (ROE) generally aligns with the pattern observed in net earnings, with high percentages in early periods that peak around late 2018 and early 2019. There is a marked decline in ROE during 2020, indicating reduced profitability relative to equity. However, ROE recovers progressively post-2020, improving significantly and stabilizing at robust levels towards the end of the timeline.
- Net earnings
- Show significant volatility with peaks in early 2018 and fluctuating values through 2019 and early 2020. A notable negative earnings figure appears in May 2020, followed by recovery and generally positive results thereafter.
- Stockholders’ equity
- Displays a steady increase, reflecting sustained growth in shareholders’ investment and retained earnings without significant decreases even during earnings fluctuations.
- Return on equity (ROE)
- Reflects the earnings volatility, with strong returns early on, a pronounced dip corresponding to the earnings drop around 2020, and recovery to historically strong levels by late 2021 and early 2022.
Overall, the company shows resilience through earnings fluctuations with a solid foundation in equity growth. The ROE fluctuations highlight sensitivity to earnings changes but indicate recovery and restoration of profitability post the mid-period downturn.
Return on Assets (ROA)
Ross Stores Inc., ROA calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net earnings (loss) | 342,036) | 384,517) | 338,445) | 366,822) | 385,030) | 494,258) | 476,479) | 237,980) | 131,197) | 22,047) | (305,842) | 456,133) | 370,932) | 412,721) | 421,142) | 441,693) | 338,108) | 389,404) | 418,252) | 450,747) | 274,449) | 316,539) | 321,018) | |||||||
| Total assets | 13,100,095) | 13,179,922) | 13,233,698) | 13,640,256) | 13,915,734) | 13,641,400) | 13,395,863) | 12,717,867) | 12,570,666) | 11,322,245) | 10,728,046) | 9,348,367) | 9,415,841) | 9,151,947) | 9,049,120) | 6,073,691) | 6,235,767) | 5,963,756) | 6,020,836) | 5,722,051) | 5,766,978) | 5,514,479) | 5,552,975) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | 10.93% | 11.19% | 11.97% | 12.63% | 11.45% | 9.82% | 6.48% | 0.67% | 2.41% | 4.80% | 8.71% | 17.77% | 17.49% | 17.63% | 17.57% | 26.14% | 25.60% | 25.70% | 24.25% | 23.82% | 21.03% | 21.45% | 20.67% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Amazon.com Inc. | 4.12% | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | 7.93% | 6.87% | 8.17% | 8.33% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Home Depot Inc. | 22.24% | 22.27% | 21.57% | 22.86% | 21.82% | 21.54% | 20.35% | 18.23% | 18.66% | 18.67% | 18.68% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lowe’s Cos. Inc. | 14.23% | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | 12.49% | 10.55% | 11.06% | 9.98% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| TJX Cos. Inc. | 11.96% | 12.40% | 12.04% | 11.53% | 8.87% | 8.73% | 4.99% | 0.29% | 2.38% | 2.68% | 6.63% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29).
1 Q3 2023 Calculation
ROA = 100
× (Net earnings (loss)Q3 2023
+ Net earnings (loss)Q2 2023
+ Net earnings (loss)Q1 2023
+ Net earnings (loss)Q4 2022)
÷ Total assets
= 100 × (342,036 + 384,517 + 338,445 + 366,822)
÷ 13,100,095 = 10.93%
2 Click competitor name to see calculations.
- Net Earnings (Loss)
- The net earnings exhibit a cyclical pattern with significant fluctuations across the periods. Initially, earnings rose to a peak in early 2018, reaching above 450 million before gradually declining toward late 2018 and early 2019. A notable dip occurred in mid-2020, where a substantial loss of approximately 306 million was recorded, marking an exceptional negative deviation from previous positive earnings. Following this loss, earnings gradually recovered over subsequent quarters, with positive but variable results in 2021 and 2022. Despite recovery, the earnings in the most recent quarters remain below the peaks observed in earlier years.
- Total Assets
- The total assets demonstrate a general upward trend over the observed timeframe. Beginning just above 5.5 billion in early 2017, the assets steadily increased, peaking around late 2020 and early 2021 at approximately 13 billion. This growth reflects asset accumulation more than doubling over the period presented. Although there is slight fluctuation, with minor declines in 2022, the overall movement is positive, indicating expansion in asset base.
- Return on Assets (ROA)
- The ROA percentages show a fluctuating yet generally declining trend over the reporting periods. The initial values in 2017 and early 2018 are strong, mostly above 20%, reflecting high profitability relative to assets. Following this peak, ROA decreases significantly, dropping below 10% in mid-2020 during the period of net loss. Post-loss, ROA improvements are observed, incrementally rising from 0.67% in early 2021 to above 11% by late 2022. Despite recovery, ROA remains substantially lower than the levels seen during the earlier years, indicating reduced efficiency or profitability on asset utilization during the later stages of the timeline.
- Overall Observations
- There is a clear increase in the scale of the company's asset base over the analyzed periods, paired with volatile earnings performance that includes a significant loss event during 2020, likely due to extraordinary circumstances. The profitability metrics, as represented by ROA, correlate closely with earnings fluctuations, showing high profitability initially, then a marked drop coinciding with the net loss, followed by gradual recovery. The patterns suggest a period of financial strain around 2020, succeeded by an ongoing recovery phase with stabilized asset growth but profitability metrics yet to return to historical highs.