American Eagle Outfitters Inc (AEO)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019	Feb 2, 2019
Operating income (ttm)	US$ in thousands	222,718	287,064	279,251	227,975	247,046	253,418	345,557	499,539	461,220	476,817	254,893	-271,343	-274,451	-266,900	-172,741	233,345	334,270	339,801	334,270	337,130
Total assets	US$ in thousands	3,557,910	3,520,790	3,431,910	3,373,890	3,420,960	3,672,480	3,629,220	3,701,520	3,786,640	3,750,020	3,495,020	3,434,810	3,498,220	3,627,980	3,630,110	3,328,680	3,452,250	3,359,160	3,255,350	1,903,380
Operating ROA		6.26%	8.15%	8.14%	6.76%	7.22%	6.90%	9.52%	13.50%	12.18%	12.72%	7.29%	-7.90%	-7.85%	-7.36%	-4.76%	7.01%	9.68%	10.12%	10.27%	17.71%

February 3, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $222,718K ÷ $3,557,910K
= 6.26%

Operating return on assets (operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its assets used in operations. For American Eagle Outfitters Inc, the operating ROA has exhibited fluctuating trends over the past several quarters.

The operating ROA for American Eagle Outfitters Inc ranged from a low of -7.90% in the third quarter of 2021 to a high of 17.71% in the first quarter of 2019. The ratio experienced a significant improvement in the first quarter of 2022, reaching 13.50%, before declining to 6.26% in the first quarter of 2024.

The declining trend in operating ROA from the first quarter of 2022 to the first quarter of 2024 could indicate challenges in effectively utilizing assets to generate operating profits. A lower operating ROA suggests that the company is less efficient in generating profits from its operational assets.

It is important for investors and stakeholders to closely monitor American Eagle Outfitters Inc's operating ROA to assess the company's operational efficiency and profitability. Further analysis of the company's asset management and operational performance may be warranted to understand the factors influencing the fluctuations in operating ROA over the analyzed periods.