Abercrombie & Fitch Company (ANF)

Return on assets (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	May 1, 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
Net income (ttm)	US$ in thousands	328,123	208,009	109,584	35,856	2,816	37,048	86,495	211,829	270,066	279,893	274,931	171,895	-114,021	-113,281	-149,029	-185,635	39,358	-19,855	-30,231	-41,550
Total assets	US$ in thousands	2,974,230	2,897,650	2,796,710	2,558,080	2,713,100	2,693,990	2,734,090	2,607,300	2,939,490	3,112,530	3,055,390	3,070,550	3,314,900	3,276,960	3,308,810	3,291,830	3,549,660	3,486,000	3,407,000	3,422,970
ROA		11.03%	7.18%	3.92%	1.40%	0.10%	1.38%	3.16%	8.12%	9.19%	8.99%	9.00%	5.60%	-3.44%	-3.46%	-4.50%	-5.64%	1.11%	-0.57%	-0.89%	-1.21%

February 3, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $328,123K ÷ $2,974,230K
= 11.03%

The return on assets (ROA) of Abercrombie & Fitch Company has shown a fluctuating trend over the past few quarters. The ROA was relatively stable from May 2019 to January 2022, ranging between -5.64% and 9.19%. However, starting from January 2022, there was a significant increase in ROA, reaching a peak of 11.03% on February 3, 2024. This indicates that the company has been more efficient in generating profits from its assets during this period.

It is important to note that Abercrombie & Fitch's ROA turned negative in the first half of 2021, hitting a low of -4.50% in July 2022. This suggests that the company's asset utilization and profitability were subpar during this period.

Overall, the recent improvement in ROA signifies that Abercrombie & Fitch has been more effective in utilizing its assets to generate earnings, although continued monitoring is necessary to assess the sustainability of this performance.