Burlington Stores Inc (BURL)
Operating return on assets (Operating ROA)
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -2,515,371 | -2,520,554 | -2,503,434 | -2,484,728 | -2,454,517 | -2,378,044 | -2,348,906 | -2,301,176 | -2,269,020 | -2,264,619 | -2,198,394 | -2,065,539 | -1,872,652 | -453,823 | -432,247 | 502,645 | 900,844 | 858,647 | 2,157,476 | 2,381,086 |
| Total assets | US$ in thousands | 8,770,410 | 8,442,860 | 7,821,440 | 7,695,250 | 7,706,840 | 7,493,700 | 6,915,540 | 7,003,880 | 7,269,600 | 7,101,510 | 6,733,360 | 6,933,480 | 7,089,510 | 7,277,830 | 6,992,500 | 7,051,040 | 6,781,090 | 6,908,800 | 6,369,930 | 6,640,680 |
| Operating ROA | -28.68% | -29.85% | -32.01% | -32.29% | -31.85% | -31.73% | -33.97% | -32.86% | -31.21% | -31.89% | -32.65% | -29.79% | -26.41% | -6.24% | -6.18% | 7.13% | 13.28% | 12.43% | 33.87% | 35.86% |
February 1, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-2,515,371K ÷ $8,770,410K
= -28.68%
Operating ROA is a key financial ratio that measures a company's ability to generate profits from its operational assets. In the case of Burlington Stores Inc, the operating ROA has shown a significant decline over the analyzed period.
The operating ROA started at a strong level of 35.86% in May 2, 2020, indicating that Burlington Stores was efficiently utilizing its assets to generate operating profits. However, the ratio steadily decreased to 33.87% by August 1, 2020, and further dropped to 12.43% by October 31, 2020.
From January 30, 2021, to May 1, 2021, there was a more pronounced decline in operating ROA, shifting from 13.28% to 7.13%, reflecting a less effective use of assets to generate operating income.
Subsequently, the operating ROA turned negative starting from July 31, 2021, and continued to decline sharply through the following quarters. This negative trend persisted through October 28, 2023, with the ratio hitting its lowest point at -33.97% in July 29, 2023.
Following this downward trajectory, the operating ROA slightly improved to -28.68% by February 1, 2025, yet still indicating a significant deficiency in asset utilization for operational profitability.
Overall, the declining trend of Burlington Stores Inc's operating ROA suggests challenges in efficiently generating operating profits from its operational assets over the analyzed period. This may raise concerns about the company's operational efficiency and profitability in the future.
Peer comparison
Feb 1, 2025