Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Ross Stores Inc., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Ross Stores Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Ross Stores Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Ross Stores Inc. payables turnover ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Ross Stores Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Ross Stores Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Ross Stores Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Ross Stores Inc. number of days of payables outstanding increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Ross Stores Inc. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Inventory Turnover
Ross Stores Inc., inventory turnover 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) | |||||||
| Cost of goods sold | 13,708,907) | 9,838,574) | 11,536,187) | 10,726,277) | 10,042,638) | 9,173,705) | |
| Merchandise inventory | 2,262,273) | 1,508,982) | 1,832,339) | 1,750,442) | 1,641,735) | 1,512,886) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 6.06 | 6.52 | 6.30 | 6.13 | 6.12 | 6.06 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 8.40 | 8.34 | 9.80 | 8.08 | — | — | |
| Home Depot Inc. | 4.55 | 5.25 | 5.00 | 5.10 | — | — | |
| Lowe’s Cos. Inc. | 3.65 | 3.71 | 3.73 | 3.85 | — | — | |
| TJX Cos. Inc. | 5.82 | 5.66 | 6.13 | 6.08 | — | — | |
| Inventory Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 6.10 | 6.36 | 6.83 | 6.07 | — | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | 6.74 | 7.06 | 7.55 | 7.84 | — | — | |
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
Inventory turnover = Cost of goods sold ÷ Merchandise inventory
= 13,708,907 ÷ 2,262,273 = 6.06
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Ross Stores Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Receivables Turnover
Ross Stores Inc., receivables turnover 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) | |||||||
| Sales | 18,916,244) | 12,531,565) | 16,039,073) | 14,983,541) | 14,134,732) | 12,866,757) | |
| Accounts receivable | 119,247) | 115,067) | 102,236) | 96,711) | 87,868) | 75,154) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 158.63 | 108.91 | 156.88 | 154.93 | 160.86 | 171.21 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 19.32 | 23.26 | 26.09 | 22.26 | — | — | |
| Home Depot Inc. | 44.12 | 44.15 | 52.34 | 55.89 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 93.79 | 69.69 | 108.00 | 112.54 | — | — | |
| Receivables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 26.52 | 30.59 | 35.28 | 33.53 | — | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | 18.02 | 21.14 | 21.80 | 21.73 | — | — | |
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
Receivables turnover = Sales ÷ Accounts receivable
= 18,916,244 ÷ 119,247 = 158.63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Ross Stores Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Payables Turnover
Ross Stores Inc., payables turnover 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) | |||||||
| Cost of goods sold | 13,708,907) | 9,838,574) | 11,536,187) | 10,726,277) | 10,042,638) | 9,173,705) | |
| Accounts payable | 2,372,302) | 2,256,928) | 1,296,482) | 1,177,104) | 1,059,844) | 1,021,735) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 5.78 | 4.36 | 8.90 | 9.11 | 9.48 | 8.98 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Amazon.com Inc. | 3.63 | 3.46 | 3.22 | 3.51 | — | — | |
| Home Depot Inc. | 7.45 | 7.52 | 9.33 | 9.16 | — | — | |
| Lowe’s Cos. Inc. | 5.65 | 5.51 | 6.42 | 5.85 | — | — | |
| TJX Cos. Inc. | 7.77 | 5.09 | 11.17 | 10.53 | — | — | |
| Payables Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 4.48 | 4.19 | 4.25 | 4.75 | — | — | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | 4.84 | 4.67 | 4.77 | 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
Payables turnover = Cost of goods sold ÷ Accounts payable
= 13,708,907 ÷ 2,372,302 = 5.78
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Ross Stores Inc. payables turnover ratio decreased from 2020 to 2021 but then slightly increased from 2021 to 2022. |
Working Capital Turnover
Ross Stores Inc., working capital turnover 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) | |
| Less: Current liabilities | 4,214,929) | 3,967,033) | 2,701,934) | 2,009,484) | 1,926,402) | 1,752,506) | |
| Working capital | 3,258,247) | 2,725,458) | 730,894) | 1,394,535) | 1,224,755) | 1,060,543) | |
| Sales | 18,916,244) | 12,531,565) | 16,039,073) | 14,983,541) | 14,134,732) | 12,866,757) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 5.81 | 4.60 | 21.94 | 10.74 | 11.54 | 12.13 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Amazon.com Inc. | — | 24.33 | 60.82 | 32.92 | — | — | |
| Home Depot Inc. | 417.56 | 24.87 | 76.81 | 59.68 | — | — | |
| Lowe’s Cos. Inc. | 245.54 | 24.92 | 530.50 | — | — | — | |
| TJX Cos. Inc. | 17.40 | 6.51 | 23.97 | 13.27 | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Discretionary Distribution & Retail | — | 21.83 | 63.17 | 38.37 | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | 19.61 | 11.06 | 13.40 | 33.38 | — | — | |
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
Working capital turnover = Sales ÷ Working capital
= 18,916,244 ÷ 3,258,247 = 5.81
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Ross Stores Inc. working capital turnover ratio deteriorated from 2020 to 2021 but then slightly improved from 2021 to 2022. |
Average Inventory Processing Period
Ross Stores Inc., average inventory processing period 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 | |||||||
| Inventory turnover | 6.06 | 6.52 | 6.30 | 6.13 | 6.12 | 6.06 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 60 | 56 | 58 | 60 | 60 | 60 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Amazon.com Inc. | 43 | 44 | 37 | 45 | — | — | |
| Home Depot Inc. | 80 | 70 | 73 | 72 | — | — | |
| Lowe’s Cos. Inc. | 100 | 98 | 98 | 95 | — | — | |
| TJX Cos. Inc. | 63 | 65 | 60 | 60 | — | — | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 60 | 57 | 53 | 60 | — | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | 54 | 52 | 48 | 47 | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.06 = 60
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Ross Stores Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Receivable Collection Period
Ross Stores Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 158.63 | 108.91 | 156.88 | 154.93 | 160.86 | 171.21 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 2 | 3 | 2 | 2 | 2 | 2 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Amazon.com Inc. | 19 | 16 | 14 | 16 | — | — | |
| Home Depot Inc. | 8 | 8 | 7 | 7 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 4 | 5 | 3 | 3 | — | — | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 14 | 12 | 10 | 11 | — | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | 20 | 17 | 17 | 17 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 158.63 = 2
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Ross Stores Inc., operating cycle calculation, comparison to benchmarks
No. days
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 60 | 56 | 58 | 60 | 60 | 60 | |
| Average receivable collection period | 2 | 3 | 2 | 2 | 2 | 2 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 62 | 59 | 60 | 62 | 62 | 62 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Amazon.com Inc. | 62 | 60 | 51 | 61 | — | — | |
| Home Depot Inc. | 88 | 78 | 80 | 79 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 67 | 70 | 63 | 63 | — | — | |
| Operating Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 74 | 69 | 63 | 71 | — | — | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | 74 | 69 | 65 | 64 | — | — | |
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 cycle = Average inventory processing period + Average receivable collection period
= 60 + 2 = 62
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Ross Stores Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Ross Stores Inc., average payables payment period 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 | |||||||
| Payables turnover | 5.78 | 4.36 | 8.90 | 9.11 | 9.48 | 8.98 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 63 | 84 | 41 | 40 | 39 | 41 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Amazon.com Inc. | 101 | 105 | 113 | 104 | — | — | |
| Home Depot Inc. | 49 | 49 | 39 | 40 | — | — | |
| Lowe’s Cos. Inc. | 65 | 66 | 57 | 62 | — | — | |
| TJX Cos. Inc. | 47 | 72 | 33 | 35 | — | — | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Discretionary Distribution & Retail | 81 | 87 | 86 | 77 | — | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | 75 | 78 | 76 | 65 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.78 = 63
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Ross Stores Inc. number of days of payables outstanding increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. |
Cash Conversion Cycle
Ross Stores Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 60 | 56 | 58 | 60 | 60 | 60 | |
| Average receivable collection period | 2 | 3 | 2 | 2 | 2 | 2 | |
| Average payables payment period | 63 | 84 | 41 | 40 | 39 | 41 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -1 | -25 | 19 | 22 | 23 | 21 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Amazon.com Inc. | -39 | -45 | -62 | -43 | — | — | |
| Home Depot Inc. | 39 | 29 | 41 | 39 | — | — | |
| Lowe’s Cos. Inc. | — | — | — | — | — | — | |
| TJX Cos. Inc. | 20 | -2 | 30 | 28 | — | — | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Discretionary Distribution & Retail | -7 | -18 | -23 | -6 | — | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | -1 | -9 | -11 | -1 | — | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 60 + 2 – 63 = -1
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Ross Stores Inc. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |