Foot Locker Inc (FL)
Return on equity (ROE)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 12,000 | -330,000 | -330,000 | 342,000 | 342,000 |
| Total stockholders’ equity | US$ in thousands | 2,909,000 | 2,890,000 | 2,890,000 | 3,293,000 | 3,293,000 |
| ROE | 0.41% | -11.42% | -11.42% | 10.39% | 10.39% |
January 31, 2025 calculation
ROE = Net income ÷ Total stockholders’ equity
= $12,000K ÷ $2,909,000K
= 0.41%
The return on equity (ROE) for Foot Locker Inc has exhibited variability over the specified time period. In January 2023 and February 2023, the ROE stood at 10.39%, indicating a healthy return relative to the equity invested in the company. However, there was a significant decline in ROE to -11.42% in January 2024 and February 2024, suggesting that the company was not generating satisfactory returns on its equity during that period. This negative trend continued with an ROE of -11.42% in February 2024. The most recent data point in January 2025 shows a marginal improvement in the ROE to 0.41%, although it remains relatively low.
The negative ROE figures in early 2024 raise concerns about Foot Locker Inc's ability to efficiently utilize its equity to generate profits. This performance may be attributed to various factors such as declining profitability or inefficient capital allocation. The slight improvement in ROE in January 2025 indicates a potential turnaround, but further sustained growth is needed to ensure the company is effectively leveraging its equity to create value for shareholders.
Peer comparison
Jan 31, 2025