Foot Locker Inc (FL)
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 | 103,000 | 142,000 | 142,000 | 581,000 | 581,000 |
| Total assets | US$ in thousands | 6,748,000 | 6,868,000 | 6,868,000 | 7,907,000 | 7,907,000 |
| Operating ROA | 1.53% | 2.07% | 2.07% | 7.35% | 7.35% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $103,000K ÷ $6,748,000K
= 1.53%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate earnings from its operational assets. Looking at the data provided for Foot Locker Inc, we observe a declining trend in the Operating ROA ratio over the years.
In January 2023, the Operating ROA was 7.35%, indicating that Foot Locker was generating $7.35 in operating income for every $100 of assets. This suggests the company was efficient in utilizing its assets to generate profits at that time.
However, in January 2024 and February 2024, the Operating ROA dropped significantly to 2.07%. This decline could signal a decrease in operating efficiency or profitability relative to the company's asset base.
By January 2025, the Operating ROA further decreased to 1.53%, indicating a continued decline in the company's ability to generate operating income from its assets. This downward trend may raise concerns about Foot Locker Inc's operational performance and asset utilization efficiency.
Overall, the decreasing trend in Foot Locker Inc's Operating ROA suggests a potential need for further analysis to identify the root causes of the declining profitability and asset efficiency in order to address any underlying issues and improve the company's financial performance.
Peer comparison
Jan 31, 2025