American Eagle Outfitters Inc (AEO)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.48% | 34.98% | 39.75% | 30.54% | 35.33% |
| Operating profit margin | 4.23% | 4.95% | 11.80% | -7.22% | 5.42% |
| Pretax margin | 4.56% | 3.58% | 11.15% | -7.78% | 5.69% |
| Net profit margin | 3.23% | 2.51% | 8.37% | -5.57% | 4.44% |
The profitability ratios of American Eagle Outfitters Inc show fluctuations over the past five years. The gross profit margin has varied between 30.54% and 39.75%, with a current ratio of 38.48% as of February 3, 2024. This indicates that the company's ability to generate profits from its core operations has improved compared to previous years.
The operating profit margin, which reflects the efficiency of management in controlling operating costs, has ranged from -7.22% to 11.80% over the same period, with a current ratio of 4.23% as of February 3, 2024. Although the operating profit margin has decreased compared to the previous year, it is still positive, suggesting that the company is effectively managing its day-to-day expenses.
The pretax margin, representing the company's profitability before taxes, has fluctuated between -7.78% and 11.15% over the last five years, with a current ratio of 4.56% as of February 3, 2024. This indicates that the company has been able to generate profits before tax, with a recent improvement compared to the previous year.
The net profit margin, which shows the company's profitability after all expenses have been deducted, has ranged from -5.57% to 8.37% over the same period, with a current ratio of 3.23% as of February 3, 2024. This ratio indicates that the company is able to turn a profit after all expenses, although it has decreased compared to the previous year.
Overall, American Eagle Outfitters Inc's profitability ratios suggest that the company has shown improvements in its ability to generate profits from its core operations, manage operating costs efficiently, and maintain profitability after taxes and expenses. However, there are fluctuations in these ratios over time, indicating the need for careful monitoring and strategic decision-making to sustain and improve profitability in the future.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.26% | 7.22% | 15.61% | -7.90% | 7.01% |
| Return on assets (ROA) | 4.78% | 3.66% | 11.08% | -6.09% | 5.75% |
| Return on total capital | 12.82% | 15.36% | 33.49% | -19.22% | 18.70% |
| Return on equity (ROE) | 9.79% | 7.83% | 29.48% | -19.26% | 15.33% |
American Eagle Outfitters Inc's profitability ratios have shown fluctuating trends over the past five years.
The Operating Return on Assets (Operating ROA) has decreased from 15.61% in 2022 to 6.26% in 2024, indicating a decline in the company's ability to generate operating income from its assets.
Return on Assets (ROA) has also exhibited a mixed performance, with a significant drop to -6.09% in 2021, followed by a recovery to 4.78% in 2024. This ratio signifies the company's efficiency in utilizing its total assets to generate profits.
Return on Total Capital has fluctuated over the years, reaching a low of -19.22% in 2021 and then improving to 12.82% in 2024. This metric reflects the company's profitability in relation to both equity and debt financing.
Return on Equity (ROE) has experienced variability, with the highest recorded in 2022 at 29.48% and the lowest at -19.26% in 2021. ROE demonstrates how effectively the company is generating profits from shareholders' equity.
In conclusion, American Eagle Outfitters Inc's profitability ratios have shown inconsistency, indicating challenges in maintaining a stable profit growth trajectory. It will be crucial for the company to focus on improving operational efficiency and managing its capital structure to enhance profitability in the future.