American Eagle Outfitters Inc (AEO)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Operating income	US$ in thousands	222,717	247,047	591,065	-271,345	233,345
Total assets	US$ in thousands	3,557,910	3,420,960	3,786,640	3,434,810	3,328,680
Operating ROA		6.26%	7.22%	15.61%	-7.90%	7.01%

February 3, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $222,717K ÷ $3,557,910K
= 6.26%

American Eagle Outfitters Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In FY 2024, the operating ROA was 6.26%, a decrease from the previous year's 7.22%. This decline may indicate a decrease in the company's operating efficiency in generating profits from its assets during the year.

Comparing FY 2024 to FY 2022, there was a significant decrease in operating ROA from 15.61% to 6.26%. This notable decrease may suggest challenges or changes within the company's operations that impacted its profitability in converting assets into operating income.

In FY 2021, the company reported a negative operating ROA of -7.90%, indicating that the company's operating losses exceeded the income generated from its assets during that year. However, in FY 2020, the operating ROA rebounded to 7.01%, showing improvement in the company's ability to generate operating income relative to its assets.

Overall, the trend in American Eagle Outfitters Inc's operating ROA highlights variability in the company's operating performance and financial efficiency in utilizing its assets to generate operating income over the past five years. Further analysis and evaluation of the company's operational strategies and financial management may be necessary to understand the factors driving these fluctuations in operating ROA.