Five Below Inc (FIVE)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Operating income (ttm)	US$ in thousands	385,571	342,898	347,709	345,126	345,043	306,850	328,365	358,522	379,880	361,912	343,712	290,686	154,803	129,296	117,732	120,619	217,284	88,731	106,468	95,145
Total assets	US$ in thousands	3,872,040	3,657,440	3,549,410	3,380,510	3,324,910	3,163,720	3,086,230	2,960,780	2,880,460	2,823,450	2,622,930	2,443,730	2,314,770	2,175,500	2,000,250	1,932,720	1,958,660	1,833,750	1,659,420	1,592,280
Operating ROA		9.96%	9.38%	9.80%	10.21%	10.38%	9.70%	10.64%	12.11%	13.19%	12.82%	13.10%	11.90%	6.69%	5.94%	5.89%	6.24%	11.09%	4.84%	6.42%	5.98%

February 3, 2024 calculation

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

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profit from its assets used in operations. Five Below Inc has shown fluctuating operating ROA over the past few quarters, ranging from a low of 4.84% in November 2019 to a high of 13.19% in January 2022. Generally, a higher operating ROA indicates that the company is more efficient in generating profit from its assets.

In the most recent quarter, Feb 3, 2024, Five Below Inc reported an operating ROA of 9.96%, showing a slight improvement compared to the previous quarter's 9.38%. This suggests that the company was able to generate more profit relative to its assets in the recent period.

It is important to note the trend in operating ROA over time to assess the company's performance and efficiency in utilizing its assets to generate profit. In this case, Five Below Inc has shown a mix of increasing and decreasing operating ROA values in the past quarters, indicating fluctuations in operational efficiency and profitability. Further analysis and comparison with industry peers would provide a better understanding of Five Below Inc's overall financial performance.