Ross Stores (WBO:ROST) Debt-to-EBITDA

: 1.54 (As of Jan. 2024)

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Debt-to-EBITDA measures a company's ability to pay off its debt.

Ross Stores's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was €857 Mil. Ross Stores's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was €4,420 Mil. Ross Stores's annualized EBITDA for the quarter that ended in Jan. 2024 was €3,426 Mil. Ross Stores's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 1.54.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Ross Stores's Debt-to-EBITDA or its related term are showing as below:

WBO:ROST' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.13 Med: 0.81 Max: 10.26
Current: 1.94

During the past 13 years, the highest Debt-to-EBITDA Ratio of Ross Stores was 10.26. The lowest was 0.13. And the median was 0.81.

WBO:ROST's Debt-to-EBITDA is ranked better than
62.37% of 837 companies
in the Retail - Cyclical industry
Industry Median: 2.67 vs WBO:ROST: 1.94

Ross Stores Debt-to-EBITDA Historical Data

The historical data trend for Ross Stores's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ross Stores Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Debt-to-EBITDA

1.38

10.26

2.09

2.32

1.94

Ross Stores Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Debt-to-EBITDA																2.02	2.36	2.03	2.02	1.54

Competitive Comparison

For the Apparel Retail subindustry, Ross Stores's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ross Stores Debt-to-EBITDA Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Ross Stores's Debt-to-EBITDA falls into.

Ross Stores Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Ross Stores's Debt-to-EBITDA for the fiscal year that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(856.804	+	4419.588)	/	2722.147
	=	1.94

Ross Stores's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(856.804	+	4419.588)	/	3426.116
	=	1.54

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.

Ross Stores (WBO:ROST) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Ross Stores Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Ross Stores's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Ross Stores (WBO:ROST) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Ross Stores Inc (WBO:ROST) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

ROST:USA ROST:Mexico RSO:Germany ROST34:Brazil ROST:Argentina

Address

5130 Hacienda Drive, Dublin, CA, USA, 94568-7579

Website

https://www.rossstores.com

Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The firm opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are frequently filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates nearly 350 DD's Discounts chains that target lower-income shoppers.