Guess? Inc. (GES)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 176,999 | 218,176 | 323,234 | 330,231 | 401,706 | 321,480 | 238,746 | 168,621 | 112,926 | 151,877 | 190,828 | 260,981 | 316,704 | 266,599 | 216,494 | 167,829 | 238,428 | 310,382 | 322,607 | 382,142 |
| Total assets | US$ in thousands | 2,766,680 | 2,794,660 | 2,776,640 | 2,748,640 | 2,590,020 | 2,590,020 | 2,478,780 | 2,478,780 | 2,489,160 | 2,489,160 | 2,440,720 | 2,440,720 | 2,425,450 | 2,425,450 | 2,316,620 | 2,316,620 | 2,316,670 | 2,316,670 | 2,250,010 | 2,555,630 |
| Operating ROA | 6.40% | 7.81% | 11.64% | 12.01% | 15.51% | 12.41% | 9.63% | 6.80% | 4.54% | 6.10% | 7.82% | 10.69% | 13.06% | 10.99% | 9.35% | 7.24% | 10.29% | 13.40% | 14.34% | 14.95% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $176,999K ÷ $2,766,680K
= 6.40%
Operating ROA measures a company's ability to generate profits from its operational activities relative to its total assets. Looking at Guess? Inc.'s operating ROA data over time, we observe fluctuations in the ratio. The trend shows the operating ROA declining from around 14-15% in early 2022 to approximately 6-7% by January 2025.
This declining trend in operating ROA suggests that Guess? Inc. may be experiencing challenges in effectively utilizing its assets to generate profits from its core operations. A decreasing operating ROA could indicate inefficiencies in the company's operational performance or declining profitability compared to the total assets employed.
Management should closely examine the reasons behind the decreasing trend in operating ROA and take corrective actions to improve operational efficiency, optimize asset utilization, and enhance profitability. It is crucial for Guess? Inc. to focus on strategies that can help reverse the declining trend in operating ROA and ensure sustainable long-term profitability.