Five Below Inc (FIVE)
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 | 323,817 | 385,571 | 385,571 | 345,043 | 345,043 |
| Total assets | US$ in thousands | 4,339,570 | 3,872,040 | 3,872,040 | 3,324,910 | 3,324,910 |
| Operating ROA | 7.46% | 9.96% | 9.96% | 10.38% | 10.38% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $323,817K ÷ $4,339,570K
= 7.46%
The operating return on assets (ROA) for Five Below Inc has shown a gradual decline over the years. As of January 28, 2023, and January 31, 2023, the operating ROA stood at 10.38%, indicating a relatively strong performance. However, by January 31, 2024, and February 3, 2024, the operating ROA decreased slightly to 9.96%. This trend continued into January 31, 2025, with the operating ROA dropping further to 7.46%.
The decreasing trend in operating ROA suggests that Five Below Inc may be experiencing challenges in generating profits from its operating activities in relation to its asset base. It is essential for the company to closely monitor and address the factors contributing to this decline to ensure sustained profitability and efficient asset utilization in the future.
Peer comparison
Jan 31, 2025