Boot Barn Holdings Inc (BOOT)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 198,214 | 231,787 | 258,338 | 86,326 | 73,668 |
| Total assets | US$ in thousands | 1,705,590 | 1,517,380 | 1,199,860 | 933,581 | 924,711 |
| Operating ROA | 11.62% | 15.28% | 21.53% | 9.25% | 7.97% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $198,214K ÷ $1,705,590K
= 11.62%
Boot Barn Holdings Inc's operating return on assets (ROA) has demonstrated a downward trend over the five-year period from March 2020 to March 2024. The operating ROA was highest in March 2022 at 21.53%, indicating that the company generated $0.2153 in operating income for every dollar of assets it owned. However, there was a significant drop in operating ROA in the subsequent years, with values of 15.28% in March 2023, 11.62% in March 2024, and lower levels in the preceding years.
The decline in operating ROA suggests that the company may be experiencing challenges in effectively utilizing its assets to generate operating income. A decreasing trend in operating ROA could indicate inefficiencies in operations, increased operating expenses, or a decline in revenue generation relative to the size of its asset base.
It is essential for Boot Barn Holdings Inc to identify the factors contributing to the decline in operating ROA and implement strategic measures to improve asset efficiency and profitability in order to enhance shareholder value and ensure long-term financial sustainability.
Peer comparison
Mar 31, 2024