Guess? Inc. (GES)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 263,277 | 248,173 | 305,037 | -60,497 | 140,671 |
| Total assets | US$ in thousands | 2,590,020 | 2,425,450 | 2,555,630 | 2,465,870 | 2,428,960 |
| Operating ROA | 10.17% | 10.23% | 11.94% | -2.45% | 5.79% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $263,277K ÷ $2,590,020K
= 10.17%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating income relative to its total assets. In the case of Guess? Inc., the operating ROA has fluctuated over the past five years.
In the most recent fiscal year ending on February 3, 2024, Guess? Inc. reported an operating ROA of 10.17%, indicating that the company earned $0.1017 in operating income for every $1 of assets. This percentage was slightly lower compared to the previous year, where the operating ROA stood at 10.23% on January 28, 2023.
However, if we look back to January 29, 2022, Guess? Inc. had a higher operating ROA of 11.94%, suggesting a more efficient utilization of assets to generate operating income. This marked a positive trend compared to the fiscal year ending on January 30, 2021, where the company reported a negative operating ROA of -2.45%. A negative value indicates that the company's operating income was insufficient to cover the asset base during that period.
Furthermore, in the fiscal year ending on February 1, 2020, Guess? Inc. demonstrated an operating ROA of 5.79%, reflecting an improvement from the negative figure in the prior year but lower than the stronger performance in 2022.
Overall, the operating ROA of Guess? Inc. has shown variability over the past five years, with fluctuations indicating changes in operational efficiency and asset utilization. It is essential for the company to strive for consistency and aim to maintain or improve its operating ROA over time to enhance profitability and shareholder value.