TJ Maxx vs. Ross / Profitability and Cash Flow Analysis

Running Head : Comparison

TJX Vs Ross - Profitability Cash Flow Analysis

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Ross Stores - Profitability Cash Flow

Ross Stores has recorded an increase in net income of 17 with the same increasing from 261m (2008 ) to 305m (2009 . Net Profit margin has also increased from 4 .36 (2008 ) to 4 .7 (2009 . This suggests that there has been a mismatch between the rate of growth in sales and the rate of growth in expenses . Expenses have exhibited a lower growth rate and hence this has effected

the relation between net profit and sales . While sales have grown by 8 .55 , expenses over the same period grew by 7 .5 The company has recorded an increase in Earnings per share of 22 .28 or 0 .43

Ross Stores has recorded an increase of 65 in cash flow from operating activities as the same increased from 353m to 583m on the bank of higher profitability , higher non cash charges and falling inventory levels . It seems that the company has embarked upon a strategy of using working capital efficiently . This can be seen by falling inventory levels financed by a higher amount of own cash flow with excess cash being used to pay off accounts payable

Cash used in Investing activities fell by 10 .62 from 244m ) in 2008 to 218m ) in 2009 as a result of lower fixed asset acquisition . Over the same period , cash flow from financing activities increased by 37 .6 to stand at 300m ) in...