Caleres Inc (CAL)
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 | 149,856 | 194,455 | 201,307 | 214,327 | 214,327 |
| Total assets | US$ in thousands | 1,894,750 | 1,804,750 | 1,804,750 | 1,836,470 | 1,836,470 |
| Operating ROA | 7.91% | 10.77% | 11.15% | 11.67% | 11.67% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $149,856K ÷ $1,894,750K
= 7.91%
Based on the data provided, Caleres Inc's operating return on assets (operating ROA) has shown a declining trend over the period from January 28, 2023, to January 31, 2025. The operating ROA was relatively stable at around 11.67% in January 2023 and February 2024. However, there was a slight decrease to 11.15% in January 2024, followed by a more significant drop to 10.77% in February 2024, indicating a decline in the company's operating efficiency and profitability.
The trend continued with a notable decrease to 7.91% in January 31, 2025, suggesting a further weakening of the company's ability to generate profits from its assets through its core business operations. A decreasing trend in operating ROA could be a cause for concern as it may indicate inefficiencies in operational management, utilization of assets, or declining profitability relative to asset investments.
Caleres Inc may need to assess its operational strategies, cost management, asset utilization, and revenue generation to improve its operating ROA and ensure sustainable profitability in the long run. Monitoring and addressing factors impacting operating ROA is crucial for enhancing shareholder value and overall financial performance.
Peer comparison
Jan 31, 2025