Chewy Inc (CHWY)

Operating return on assets (Operating ROA)

Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 Jan 28, 2024 Oct 29, 2023 Jul 30, 2023 Apr 30, 2023 Jan 29, 2023 Oct 30, 2022 Jul 31, 2022 May 1, 2022 Jan 30, 2022 Oct 31, 2021 Aug 1, 2021 May 2, 2021 Jan 31, 2021 Nov 1, 2020 Aug 2, 2020 May 3, 2020 Feb 2, 2020
Operating income (ttm) US$ in thousands 102,695 67,344 18,634 -21,248 14,072 23,357 61,671 55,753 -23,148 -54,642 -92,483 -72,178 12,608 12,228 -3,857 -90,464 -172,662 -219,133 -269,942 -252,726
Total assets US$ in thousands 2,957,900 3,102,490 3,201,050 3,186,850 2,936,480 2,904,010 2,738,340 2,519,820 2,491,160 2,368,510 2,190,040 2,086,280 2,195,480 2,018,360 1,898,530 1,740,910 1,643,240 1,144,840 1,123,370 932,321
Operating ROA 3.47% 2.17% 0.58% -0.67% 0.48% 0.80% 2.25% 2.21% -0.93% -2.31% -4.22% -3.46% 0.57% 0.61% -0.20% -5.20% -10.51% -19.14% -24.03% -27.11%

October 27, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $102,695K ÷ $2,957,900K
= 3.47%

Operating return on assets (operating ROA) is a key financial ratio that indicates how efficiently a company generates profits from its assets used in its core operations. Analyzing the trend of Chewy Inc's operating ROA over the past few quarters reveals the following:

1. Positive Turnaround: Chewy Inc experienced a positive trend in operating ROA from negative percentages in the first quarter of 2020 to reaching a peak of 3.47% in the most recent quarter, indicating a significant improvement in the company's operational efficiency and profitability.

2. Volatility: The operating ROA of Chewy Inc has shown volatility over the periods analyzed, with fluctuations from negative figures to positive figures. This volatility could be a result of various factors affecting the company's operating performance, such as changes in sales, expenses, or asset utilization.

3. Recovery and Stability: The recent quarters show a consistent positive trend in operating ROA, signaling a potential recovery and stabilization in Chewy Inc's operational profitability. This trend suggests that the company is effectively managing its assets to generate returns for its operations.

4. Long-term Performance: Looking at the longer-term perspective, Chewy Inc has made significant progress in improving its operating ROA compared to the substantial negative percentages reported in previous years. This improvement reflects the company's efforts to enhance operational efficiency and profitability over time.

Overall, Chewy Inc's operating return on assets has displayed a positive turnaround and improvement in recent quarters, indicating enhanced operational efficiency and better utilization of assets to generate profits. Tracking this ratio over time can provide valuable insights into the company's operational performance and effectiveness in utilizing its assets.


Peer comparison

Oct 27, 2024