Foot Locker Inc (FL)
Return on assets (ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -330,000 | 342,000 | 893,000 | 323,000 | 491,000 |
| Total assets | US$ in thousands | 6,868,000 | 7,907,000 | 8,135,000 | 7,043,000 | 6,589,000 |
| ROA | -4.80% | 4.33% | 10.98% | 4.59% | 7.45% |
February 3, 2024 calculation
ROA = Net income ÷ Total assets
= $-330,000K ÷ $6,868,000K
= -4.80%
The return on assets (ROA) of Foot Locker Inc has exhibited variability over the past five years. In the most recent fiscal year ending on February 3, 2024, the company's ROA was negative at -4.80%. This signifies that for every dollar of assets Foot Locker holds, it generated a net loss of 4.80 cents in profit.
Looking back at the previous years, the ROA trend appears to be fluctuating. In January 2023, Foot Locker's ROA stood at a positive 4.33%, indicating that the company generated 4.33 cents of profit for every dollar of assets during that period. This was followed by a noticeable increase in ROA to 10.98% in January 2022, suggesting a significant improvement in the company's profitability efficiency.
However, the ROA decreased in the subsequent year to 4.59% in January 2021, reflecting a reduction in profit generated for each dollar of assets. A further decline was observed in February 2020, with the ROA standing at 7.45%.
Overall, the fluctuating nature of Foot Locker Inc's ROA suggests varying levels of efficiency in utilizing its assets to generate profits over the past five years. The negative ROA in the most recent fiscal year raises concerns about the company's ability to effectively generate profits from its asset base.
Peer comparison
Feb 3, 2024