Chewy Inc (CHWY)

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. It is calculated by dividing operating income by average total assets. A positive operating ROA indicates that the company is effectively utilizing its assets to generate profits, while a negative operating ROA suggests inefficiency in asset utilization.

Analyzing Chewy Inc's operating ROA over the past five years, we observe a mixed performance. The trends indicate fluctuations in the company's operational efficiency and profitability. In the most recent fiscal year ending January 28, 2024, Chewy Inc reported a negative operating ROA of -0.74%, indicating a decrease in profitability from the previous year. This suggests that the company may have encountered challenges in generating profits from its operational assets during this period.

Comparing this to the prior fiscal years, we note that Chewy Inc experienced positive operating ROA figures in January 29, 2023, and February 2, 2020, at 2.21% and -27.11% respectively. These positive figures indicate that Chewy Inc was more successful in generating profits from its operational assets during those years. However, the company experienced negative operating ROA in January 30, 2022, and January 31, 2021, at -3.46% and -5.20% respectively, suggesting operational challenges and inefficiencies during those periods.

Overall, the trend in Chewy Inc's operating ROA reflects varying levels of operational efficiency and financial performance over the past five years. The negative operating ROA in the most recent year raises concerns about the company's ability to effectively utilize its assets to generate profits, warranting further investigation into its operational strategies and financial management practices.

Peer comparison

Jan 28, 2024