# Ross Stores (ROST) Forecast Calculator

Interactive five-year financial forecast and DCF for Ross Stores. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/ross-stores/forecast
- Industry: Consumer
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 16039073000 | 1616063000 | 2515180000 | 1660928000 |
| 2022 | 12531565000 | 1840500000 | 470542000 | 85382000 |
| 2023 | 18916244000 | 1181009000 | 2619204000 | 1722589000 |
| 2024 | 18695829000 | 1035303000 | 2384986000 | 1512041000 |
| 2025 | 20376941000 | 1751678000 | 2727095000 | 1874520000 |

## Frequently asked questions

### What is Ross Stores' business model?

Ross Stores operates as the largest off-price apparel and home fashion chain in the U.S., purchasing name-brand merchandise at significant discounts and passing those savings (20% to 70% off) to consumers. The company manages two retail banners, Ross Dress for Less and dd's DISCOUNTS, primarily through an asset-heavy brick-and-mortar network across the United States.

### How does Ross Stores generate its revenue?

Ross Stores generates revenue primarily through consolidated net sales from its physical store network, driven by new store openings and comparable store sales growth. Revenue can be modeled by multiplying the total store count by average sales per store, or by adjusting prior year sales for comparable store growth and adding non-comparable sales from new locations.

### What are the key assumptions for Ross Stores' capital expenditures in a financial model?

The financial model for Ross Stores assumes capital expenditures (Capex) as a percentage of revenue to be approximately 3.38%. This Capex is split, with roughly 40% allocated to maintenance activities like store remodels and IT upgrades, and 60% dedicated to growth initiatives such as new store rollouts and expanding distribution centers.

### What is the purpose of the Ross Stores financial model?

The Ross Stores financial model provides a comprehensive three-statement forecast and discounted cash flow (DCF) valuation to help equity research analysts determine the intrinsic value of its shares. It also assesses how new store rollouts and comparable store sales growth impact the company's operating leverage.

### Can I download an Excel financial model for Ross Stores?

Yes, a downloadable Excel financial model for Ross Stores is available, offering a forecast horizon from FY2026 to FY2030. This general corporate model provides detailed assumptions, including a revenue growth rate of approximately 6.17%, to aid in financial analysis.

### How does Ross Stores' working capital strategy impact its cash flow?

Ross Stores typically maintains negative or near-zero net working capital, which serves as a source of cash as the business expands. This profile is influenced by a high inventory level due to its "packaway" strategy, where packaway is roughly 40% of total inventory, and near-zero Days Sales Outstanding from its cash/credit card business.