The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Ross Stores's quick ratio for the quarter that ended in Jan. 2024 was 1.24.
Ross Stores has a quick ratio of 1.24. It generally indicates good short-term financial strength.
The historical rank and industry rank for Ross Stores's Quick Ratio or its related term are showing as below:
BSP:ROST34'
s Quick Ratio Range Over the Past 10 Years
Min: 0.53 Med: 0.8 Max: 1.34
Current: 1.24
During the past 13 years, Ross Stores's highest Quick Ratio was 1.34. The lowest was 0.53. And the median was 0.80.
BSP:ROST34's Quick Ratio is ranked better than 66.01% of 1118
companies
in the Retail - Cyclical industry
Industry Median: 0.865
vs BSP:ROST34: 1.24
Ross Stores Quick Ratio Historical Data
The historical data trend for Ross Stores's Quick Ratio 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.
Competitive Comparison of Ross Stores's Quick Ratio
For the Apparel Retail subindustry, Ross Stores's Quick Ratio, along with its competitors' market caps and Quick Ratio 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's Quick Ratio Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Ross Stores's Quick Ratio falls into.
Ross Stores Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Ross Stores's Quick Ratio for the fiscal year that ended in Jan. 2024 is calculated as
* 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.
Ross Stores (BSP:ROST34) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Ross Stores Quick Ratio Related Terms
Thank you for viewing the detailed overview of Ross Stores's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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