Buckle Inc (BKE)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 241,364 | 271,059 | 271,059 | 328,132 | 328,132 |
| Total assets | US$ in thousands | 913,173 | 889,810 | 889,810 | 837,579 | 837,579 |
| Operating ROA | 26.43% | 30.46% | 30.46% | 39.18% | 39.18% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $241,364K ÷ $913,173K
= 26.43%
Based on the data provided, Buckle Inc's operating Return on Assets (ROA) has shown a gradual decline over the past few years. As of January 28, 2023, and January 31, 2023, the operating ROA stood at 39.18%, indicating a strong performance in utilizing its assets to generate operating income. However, by January 31, 2024, and February 3, 2024, the operating ROA decreased to 30.46%, suggesting a decrease in the efficiency of asset utilization to generate operating income.
Further, by January 31, 2025, the operating ROA declined further to 26.43%, reflecting a continued downward trend in the company's ability to generate operating income from its assets. This decline may indicate potential challenges in effectively managing and utilizing its assets to drive profitability.
It would be advisable for Buckle Inc to closely monitor its asset management strategies and operational efficiency to improve its operating ROA and ensure sustainable profitability in the long term. Conducting a detailed analysis of the factors contributing to the decline in operating ROA could help the company identify areas for improvement and implement appropriate measures to enhance its financial performance.
Peer comparison
Jan 31, 2025