Capri Holdings Ltd (CPRI)
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 | -241,000 | 679,000 | 903,000 | 19,000 | -192,000 |
| Total assets | US$ in thousands | 6,689,000 | 7,295,000 | 7,480,000 | 7,481,000 | 7,946,000 |
| Operating ROA | -3.60% | 9.31% | 12.07% | 0.25% | -2.42% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-241,000K ÷ $6,689,000K
= -3.60%
Operating return on assets (Operating ROA) is a key financial ratio that indicates the efficiency of a company in generating operating profits from its assets. Capri Holdings Ltd's Operating ROA has varied over the past five years.
In Mar 2024, Capri Holdings Ltd reported an Operating ROA of -3.60%, indicating that the company experienced a negative operating return on its assets. This could imply inefficiencies in utilizing its assets to generate operating profits, resulting in operating losses.
In Mar 2023, the company's Operating ROA improved significantly to 9.31%, reflecting a strong performance in generating operating profits relative to its assets. This uptrend continued in Mar 2022, with Capri Holdings Ltd achieving an Operating ROA of 12.07%, showcasing further efficiency in asset utilization.
In Mar 2021, the company's Operating ROA was 0.25%, indicating a modest return on assets generated from operations. However, in Mar 2020, Capri Holdings Ltd experienced a decline in Operating ROA to -2.42%, suggesting inefficiencies and operational challenges during that period.
Overall, Capri Holdings Ltd's Operating ROA has shown fluctuations over the years, signifying varying levels of efficiency in generating operating profits from its assets. It is important for the company to analyze the factors contributing to these fluctuations and strive for consistent improvement in asset utilization to drive profitability.
Peer comparison
Mar 31, 2024