ROST ROSS STORES, INC.

Overview and Growth

ROSS STORES, INC. generated $22.75B of revenue in fiscal 2025, with net income of $2.15B and an operating cash inflow of $3.03B. At $22.75B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $21.13B in fiscal 2024, revenue recorded a 7.7% year-over-year increase. Diluted earnings per share were $6.61, translating the period’s attributable earnings into the amount reported for each diluted share. The per-share result recorded a 4.6% increase from fiscal 2024 diluted EPS of $6.32. Asset turnover was 1.46x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $6.30B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 27.7%, so that share of each revenue unit remained after the cost of revenue reported for the period. Operations produced $2.71B of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 11.9%, showing the portion of revenue preserved after the full set of operating costs. After all reported below-operating-line items, the company recorded net income of $2.15B for the fiscal year. The final earnings result represented 9.4% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $2.84B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 12.5%, relating income before taxes directly to revenue. The reported income-tax provision was $697.11M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 24.5%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $15.55B, supported by $9.36B of liabilities and $6.19B of shareholder equity. Current assets were $7.64B against $4.83B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 1.58x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $4.59B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 95.2% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $1.52B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.25x, showing how much debt the company carried for each unit of book equity. Debt represented 9.8% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 60.2%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 29.5%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Cash flow from operations was $3.03B, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.41x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $819.27M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 27.1% of operating cash flow, quantifying the share of cash from operations directed to investment. After capital spending, free cash flow was $2.21B, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 9.7%, showing how much sales converted into cash after investment. Measured against total assets, free cash flow represented 14.2%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Jan 31, 2026. Analysis generated Oct 21, 2026.