American Eagle Outfitters Inc (AEO)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	329,381	231,351	157,648	177,084	206,032	248,286	290,540	212,293	134,046	140,065	146,084	208,903	271,722	174,667	77,612	28,080	-2,764	90,130	284,820	405,304
Total stockholders’ equity	US$ in thousands	1,766,860	1,746,600	1,694,370	1,752,360	1,736,760	1,736,760	1,738,290	1,738,290	1,673,000	1,673,000	1,619,020	1,619,020	1,599,160	1,599,160	1,462,530	1,462,530	1,372,920	1,372,920	1,383,010	1,423,670
ROE		18.64%	13.25%	9.30%	10.11%	11.86%	14.30%	16.71%	12.21%	8.01%	8.37%	9.02%	12.90%	16.99%	10.92%	5.31%	1.92%	-0.20%	6.56%	20.59%	28.47%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $329,381K ÷ $1,766,860K
= 18.64%

American Eagle Outfitters Inc's return on equity (ROE) has shown fluctuations over the analyzed periods. The ROE stood at 28.47% on January 31, 2022, reflecting a strong performance. Subsequently, there was a decline in ROE to 20.59% by April 30, 2022, and further dropped to 6.56% by July 30, 2022. In July 31, 2022, there was a negative ROE of -0.20%, indicating a loss or inefficiency in generating profits relative to shareholders' equity.

However, the company began to show improvement with a ROE of 1.92% on October 29, 2022, and further to 5.31% by October 31, 2022. The positive trend continued with incremental increases in ROE over subsequent periods, reaching a peak of 18.64% on January 31, 2025.

Overall, the fluctuations in ROE suggest varying levels of profitability and efficiency in utilizing shareholders' equity. It is important for stakeholders to closely monitor these metrics to assess the company's financial performance and sustainability.