American Eagle Outfitters Inc (AEO)

Operating return on assets (Operating ROA)

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Feb 3, 2024 Jan 31, 2024 Oct 31, 2023 Oct 28, 2023 Jul 31, 2023 Jul 29, 2023 Apr 30, 2023 Apr 29, 2023 Jan 31, 2023 Jan 28, 2023 Oct 31, 2022 Oct 29, 2022 Jul 31, 2022 Jul 30, 2022 Apr 30, 2022 Jan 31, 2022
Operating income (ttm) US$ in thousands 427,504 294,270 317,837 342,089 389,614 445,668 381,302 303,358 200,828 209,120 217,412 287,543 382,260 322,692 263,124 187,478 149,884 215,824 411,497 579,282
Total assets US$ in thousands 3,830,780 3,736,130 3,540,320 3,557,220 3,557,910 3,885,870 3,520,790 3,520,790 3,431,910 3,431,910 3,373,890 3,373,890 3,420,960 3,420,960 3,672,480 3,672,480 3,629,220 3,629,220 3,701,520 3,786,640
Operating ROA 11.16% 7.88% 8.98% 9.62% 10.95% 11.47% 10.83% 8.62% 5.85% 6.09% 6.44% 8.52% 11.17% 9.43% 7.16% 5.10% 4.13% 5.95% 11.12% 15.30%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $427,504K ÷ $3,830,780K
= 11.16%

The operating return on assets (operating ROA) for American Eagle Outfitters Inc has shown fluctuations over the period from January 31, 2022, to January 31, 2025. The company's operating ROA ranged from a high of 15.30% in January 2022 to a low of 4.13% in July 2022, indicating variability in the efficiency of generating operating profits relative to its assets.

Throughout the period, the operating ROA generally decreased until reaching a low point in July 2023, but started to recover thereafter. This suggests that the company faced challenges in effectively utilizing its assets to generate operating earnings during that time but implemented strategies that led to improvements in performance.

The operating ROA started to pick up from October 2023 onwards, reaching its peak at 11.47% in January 2024. However, there were slight fluctuations in the following periods, with the operating ROA hovering around 10% before declining to 7.88% in October 2024 and then recovering slightly to 11.16% in January 2025.

Overall, the trend in American Eagle Outfitters Inc's operating ROA reflects a mix of challenges and improvements in the company's ability to generate operating profits from its assets. It is essential for investors and stakeholders to monitor the company's operating ROA to assess its operational efficiency and profitability.