Abercrombie & Fitch Company (ANF)

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	740,820	707,557	751,076	713,471	721,642	588,683	455,724	351,712	247,700	244,880	242,060	225,595	209,130	127,164	37,951	10,682	91,272	184,349	259,271	341,728
Total assets	US$ in thousands	3,299,890	3,269,870	3,049,560	2,970,080	2,974,230	2,974,230	2,897,650	2,897,650	2,796,710	2,796,710	2,558,080	2,558,080	2,713,100	2,713,100	2,693,990	2,693,990	2,734,090	2,734,090	2,607,300	2,939,490
Operating ROA		22.45%	21.64%	24.63%	24.02%	24.26%	19.79%	15.73%	12.14%	8.86%	8.76%	9.46%	8.82%	7.71%	4.69%	1.41%	0.40%	3.34%	6.74%	9.94%	11.63%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $740,820K ÷ $3,299,890K
= 22.45%

The operating return on assets (operating ROA) for Abercrombie & Fitch Company has shown fluctuations over the period from January 31, 2022, to January 31, 2025. The operating ROA started at 11.63% in January 2022, indicating that the company generated $0.1163 in operating income for every $1 of assets.

There was a gradual decline in operating ROA in the subsequent quarters, reaching a low of 0.40% by October 29, 2022. This decline suggests that the company's operating income generation relative to its assets was weakening during this period.

However, there was a turnaround in the company's performance starting from January 31, 2023, with the operating ROA increasing to 7.71% and then further improving to reach 24.26% by February 3, 2024. This significant increase indicates a substantial improvement in the company's ability to generate operating income from its assets efficiently.

The operating ROA remained relatively stable around the 24% range from February 2024 to October 2024, demonstrating consistent strong performance in utilizing its assets to generate operating income effectively.

As of January 31, 2025, the operating ROA stood at 22.45%, showcasing the company's continued ability to generate operating income efficiently from its assets.

Overall, the analysis of Abercrombie & Fitch Company's operating ROA indicates fluctuations in performance over the period under review, with a notable improvement in operating efficiency and profitability observed from January 2023 to October 2024.