Five Below Inc (FIVE)

Return on assets (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
Net income (ttm)	US$ in thousands	301,106	270,227	271,779	266,288	261,528	230,404	238,435	261,932	278,810	262,551	258,799	223,539	123,361	109,798	99,562	98,812	175,056	78,198	93,072	86,045
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
ROA		7.78%	7.39%	7.66%	7.88%	7.87%	7.28%	7.73%	8.85%	9.68%	9.30%	9.87%	9.15%	5.33%	5.05%	4.98%	5.11%	8.94%	4.26%	5.61%	5.40%

February 3, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $301,106K ÷ $3,872,040K
= 7.78%

Five Below Inc's return on assets (ROA) has shown fluctuations over the past several quarters. The ROA ranged from 4.26% to 9.87% during the period under review. Generally, a higher ROA indicates better efficiency in generating profits from its assets.

The company's ROA was relatively stable in the range of 7% to 9% in the recent quarters, indicating consistent profitability relative to its asset base. However, there was a noticeable decline in ROA in the earlier quarters of 2021 and 2020, reaching as low as 4.26%. This could signify a period of lower profitability or less effective asset utilization during that timeframe.

It is important for Five Below Inc to closely monitor its ROA and investigate the factors contributing to the fluctuations to ensure sustained performance and efficient use of its assets in generating returns for shareholders.