Five Below Inc (FIVE)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Operating income	US$ in thousands	385,571	345,043	379,880	154,803	217,284
Total assets	US$ in thousands	3,872,040	3,324,910	2,880,460	2,314,770	1,958,660
Operating ROA		9.96%	10.38%	13.19%	6.69%	11.09%

February 3, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $385,571K ÷ $3,872,040K
= 9.96%

Operating ROA measures how efficiently a company generates operating profits from its assets. Five Below Inc's operating ROA has fluctuated over the past five years. In fiscal year 2022, the operating ROA was 9.96%, slightly lower than the previous year's 10.38%. This indicates a decrease in the company's ability to generate operating profits relative to its assets. However, in fiscal year 2022, the operating ROA was still higher than the levels seen in fiscal years 2021 and 2020, when it was 6.69% and 11.09%, respectively. This suggests that the company's profitability from its operating activities improved compared to two years ago but declined compared to the immediate prior year. Overall, the company's operating ROA has shown some volatility in recent years, indicating changes in efficiency in utilizing its assets to generate operating profits.