Ross Stores Trading Volume Surges 109.57% to $635 Million Ranking 142nd in Daily Turnover

On June 11, 2025, Ross Stores (ROST) saw a significant increase in trading volume, with a turnover of $635 million, marking a 109.57% rise from the previous day. This surge placed Ross Stores at the 142nd position in terms of trading volume for the day. However, the stock price experienced a decline of 2.63%, marking the third consecutive day of losses, with a cumulative drop of 5.15% over the past three days.

Ross Stores recently announced a 10.2% increase in its quarterly dividend, raising it to $0.405 per share. This decision underscores the company's robust financial health and its commitment to returning value to shareholders. The dividend, payable on June 30, 2025, is supported by strong operating cash flow, which surged 11% to $410 million for the quarter ended May 3, 2025. This cash flow comfortably covers the $207 million in capital expenditures for new store openings and a new distribution center, resulting in a quarterly operating free cash flow (OFCF) of $203 million. The OFCF payout ratio stands at 65.3%, indicating a sustainable dividend policy.

The company's financial health is further evidenced by its cash-to-debt ratio of 2.5x, with $3.78 billion in cash and equivalents against $1.52 billion in total debt. This ratio has improved from previous periods, reflecting strategic debt repayments and substantial stock repurchases. The total long-term debt has decreased to $1.52 billion, down from $2.46 billion in May 2024, primarily due to the repayment of $700 million in Senior Notes in April 2025 and an additional $250 million in September 2024. The company also maintains an undrawn $1.3 billion revolving credit facility, ensuring ample liquidity and financial flexibility.

Ross Stores' management has demonstrated a disciplined approach to capital allocation, balancing dividend payments with significant capital expenditures for new stores and distribution centers. The ongoing $2.1 billion stock repurchase program, with $787.5 million remaining, complements the dividend strategy by enhancing per-share metrics and supporting future dividend growth. The company's earnings payout ratio of 27.6% is conservative, providing a comfortable buffer for dividend payments. Overall, Ross Stores' financial strategy appears well-positioned to sustain and potentially grow dividends, supported by strong cash flow generation and a healthy balance sheet.