Foot Locker Inc (FL)
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 | -330,000 | 78,000 | 146,000 | 245,000 | 342,000 | 426,000 | 488,000 | 824,000 | 893,000 | 913,000 | 1,020,000 | 635,000 | 323,000 | 334,000 | 194,000 | 209,000 | 491,000 | 515,000 | 520,000 | 548,000 |
| Total assets | US$ in thousands | 6,868,000 | 7,420,000 | 7,536,000 | 7,643,000 | 7,907,000 | 7,762,000 | 7,868,000 | 7,878,000 | 8,135,000 | 8,211,000 | 7,585,000 | 7,442,000 | 7,043,000 | 7,018,000 | 6,912,000 | 6,796,000 | 6,589,000 | 6,621,000 | 6,720,000 | 6,928,000 |
| ROA | -4.80% | 1.05% | 1.94% | 3.21% | 4.33% | 5.49% | 6.20% | 10.46% | 10.98% | 11.12% | 13.45% | 8.53% | 4.59% | 4.76% | 2.81% | 3.08% | 7.45% | 7.78% | 7.74% | 7.91% |
February 3, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $-330,000K ÷ $6,868,000K
= -4.80%
The return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets. ROA indicates how effectively a company is using its assets to generate earnings.
Analyzing Foot Locker Inc's ROA over the historical period provided, we can see fluctuations in the company's asset efficiency. The ROA ranged from -4.80% to 13.45% during this period.
The negative ROA of -4.80% recorded on Feb 3, 2024 indicates that Foot Locker Inc experienced a loss in profitability relative to its assets. This could be a cause for concern as it suggests that the company's assets may not have been utilized effectively to generate profits.
Subsequently, the ROA improved to 1.05% on Oct 28, 2023 and further increased to 1.94% on Jul 29, 2023, indicating a gradual recovery in asset efficiency. The ROA continued to rise reaching a peak of 13.45% on Jul 31, 2021, reflecting strong asset utilization and profitability.
It is notable that there were fluctuations in the ROA during the period, indicating changes in the company's ability to generate profits from its assets. Investors and analysts should further investigate the reasons behind these fluctuations to assess the company's operational efficiency and financial health.
Peer comparison
Feb 3, 2024