Foot Locker Inc (FL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,890,000 | 3,293,000 | 3,243,000 | 2,776,000 | 2,473,000 |
| ROE | -11.42% | 10.39% | 27.54% | 11.64% | 19.85% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-330,000K ÷ $2,890,000K
= -11.42%
The return on equity (ROE) of Foot Locker Inc has been fluctuating in recent years, as indicated by the data provided in the table. In the latest fiscal year ending February 3, 2024, the ROE was negative at -11.42%, highlighting that the company's net income generated less return for its shareholders' equity investment. This decrease in ROE from the previous year is a cause for concern, as it suggests that the company's profitability and efficiency in utilizing shareholder funds deteriorated.
In contrast, the ROE was significantly higher in the fiscal year ending January 29, 2022, at 27.54%, indicating that Foot Locker Inc was more successful in generating profits relative to its shareholders' equity in that period. This high ROE suggests that the company was efficient in utilizing equity to drive earnings growth and create shareholder value.
The ROE for the fiscal years ending January 28, 2023, and January 30, 2021, was 10.39% and 11.64%, respectively, indicating moderate returns in these periods. These ROE figures suggest that Foot Locker Inc was moderately successful in generating profits relative to equity investment in those years.
The highest ROE in recent years was observed in the fiscal year ending February 1, 2020, at 19.85%, reflecting a period of relatively strong performance in terms of profitability and efficiency in utilizing shareholder funds.
Overall, it is important for Foot Locker Inc to carefully analyze the factors driving the fluctuations in ROE and take appropriate strategic actions to improve profitability and enhance shareholder value in the future.
Peer comparison
Feb 3, 2024