At the moment, the debt-to-equity of Ross Stores, Inc. (NASDAQ:ROST) is low, standing at 13.02, a figure that is less than the 561.17 average recorded by the industry. This means that the company is currently holding a debt level at 397.33 M. ROST shares have a strong debt-to-equity ratio but their quick ratio which reads 0.70 is strong and might cause problems for them later in the future.

Even though there was a rise of +6.63% in revenue, the company failed to succeed in outperforming the industry average of 13.22%. For the most recent quarter, the net income has jumped by +23.20%. This strength in their income has affected them and thus increased their earnings to $524.45 M. The 6.63% yoy growth of ROST’s revenue has gone up that of the industry average by -3.44%. For the past 12 months, Ross Stores, Inc. revenue has gone up by 10.07%. The sustained growth in their revenue has helped boost their earnings per share.

Ross Stores, Inc. (ROST) has seen their earnings per share increased to $0.91 during the last quarter in comparison to the same quarter last year. They have recorded a -12.55% declining earnings per share earnings. They have recorded a -12.55% declining earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.90. In the fiscal year 2018, Ross Stores, Inc. overcame its bottom line by hitting earning $3.55 per share compared to the $2.83 in 2017.

The 12-month return on equity has significantly fallen to 52.81 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Services sector, the industry average is 17.01 while 14.51 is of the sector.

ROST total operating cash flow had dropped to $435.89 billion compared to $542.13 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 16.02 ratio of the stock is lower than the industry’s 20.48.

Ross Stores, Inc. (NASDAQ:ROST) has a price-to-earnings ratio of 19.48 which is lower than the 30.76 industry average at the moment. In addition to their unfavorable P/E ratio, Ross Stores, Inc. has maintained a gross margin of 28.67. This shows whether the company has what it takes to effectively turn the revenue into profit.

The company’s ROA is 26.60 when compared to 8.46 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Ross Stores, Inc. ROE is above 14.51 that of both the sector average.

The operating profit margin for Ross Stores, Inc. (ROST) is 13.99%, a figure which is considered to be weak. It has gone 9.69 from the 13.80 over the past 5 years. In addition to this, their operating margin is 4.3 higher than the industry average.

The net profit margin which stood at 8.87 on average in the past 5 years has jumped to 10.68 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 6.42.

Analysts meanwhile rate Ross Stores, Inc. (NASDAQ:ROST) as a buy. Still some above discussed indicators of the $33.01B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the ROST shares to either perform positively or negatively when compared to other stocks. The primary strengths of Ross Stores, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.