American Eagle Outfitters Inc (AEO)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.20% | 38.48% | 38.48% | 34.98% | 34.98% |
| Operating profit margin | 8.02% | 4.23% | 4.23% | 4.95% | 4.95% |
| Pretax margin | 8.30% | 4.56% | 4.56% | 3.58% | 3.58% |
| Net profit margin | 6.18% | 3.23% | 3.23% | 2.51% | 2.51% |
American Eagle Outfitters Inc's profitability ratios have shown a positive trend over the past few years.
1. Gross profit margin: The company's gross profit margin has increased steadily from 34.98% in January 2023 to 39.20% in January 2025. This indicates that American Eagle Outfitters has been effectively managing its cost of goods sold and increasing profitability on sales.
2. Operating profit margin: The operating profit margin also improved over the years, from 4.95% in January 2023 to 8.02% in January 2025. This suggests that the company has been able to control its operating expenses relative to its revenue, resulting in higher operating profitability.
3. Pretax margin: The pretax margin, which reflects the percentage of each dollar of revenue that translates into profit before taxes, has shown consistent growth. It increased from 3.58% in January 2023 to 8.30% in January 2025, indicating improved profitability before tax expenses.
4. Net profit margin: American Eagle Outfitters' net profit margin, a measure of how much of each dollar of revenue translates into profit after all expenses have been deducted, has also displayed a positive trend. It rose from 2.51% in January 2023 to 6.18% in January 2025, reflecting the company's ability to generate higher profits per dollar of revenue.
Overall, the increasing trend in these profitability ratios signifies that American Eagle Outfitters Inc has been efficient in managing its costs, operating expenses, and taxes, leading to improved profitability and financial performance.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.15% | 6.26% | 6.26% | 7.22% | 7.22% |
| Return on assets (ROA) | 8.60% | 4.78% | 4.78% | 3.66% | 3.66% |
| Return on total capital | 25.18% | 12.82% | 13.88% | 12.02% | 15.36% |
| Return on equity (ROE) | 18.64% | 9.79% | 9.79% | 7.83% | 7.83% |
American Eagle Outfitters Inc's profitability ratios show a positive trend over the years.
- The Operating Return on Assets (Operating ROA) remained relatively stable at around 7.22% in January 2023 and February 2024, but slightly decreased to 6.26% in January 2024 before increasing to 11.15% in January 2025. This indicates the company's ability to generate operating income from its assets has improved significantly in the latest period.
- The Return on Assets (ROA) also showed an upward trend, starting at 3.66% in January 2023 and February 2024, rising to 4.78% in January 2024, and further increasing to 8.60% in January 2025. This suggests that the company's efficiency in generating profits from its total assets has improved notably.
- The Return on Total Capital exhibited fluctuations over the years, with values ranging from 12.02% in January 2023 to a peak of 25.18% in January 2025. This ratio indicates the company's ability to generate profits from both equity and debt sources.
- The Return on Equity (ROE) also saw an upward trajectory, starting at 7.83% in January 2023 and February 2024, and increasing steadily to 18.64% in January 2025. This reflects the company's ability to generate profits for its shareholders relative to the equity invested.
Overall, the profitability ratios demonstrate American Eagle Outfitters Inc's improved operational efficiency and ability to generate favorable returns for its investors over the analyzed period.