Guess? Inc. (GES)

Return on assets (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
Net income (ttm) US$ in thousands 56,726 94,294 232,959 299,263 341,942 265,705 189,468 123,073 55,567 112,377 169,187 201,716 235,356 163,475 91,594 77,729 124,309 168,762 174,680 196,590
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
ROA 2.05% 3.37% 8.39% 10.89% 13.20% 10.26% 7.64% 4.97% 2.23% 4.51% 6.93% 8.26% 9.70% 6.74% 3.95% 3.36% 5.37% 7.28% 7.76% 7.69%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $56,726K ÷ $2,766,680K
= 2.05%

The return on assets (ROA) for Guess? Inc. has fluctuated over the past few years based on the provided data. Starting at 7.69% in January 2022, the ROA improved slightly to 7.76% in April 2022 before decreasing to 7.28% in July 2022. The trend continued downward, reaching a low of 2.05% in January 2025.

There have been periods of improvement in ROA, such as in January 2023 when it reached 9.70% and in February 2024 at 13.20%. These peaks indicate that the company was effective in generating profits relative to its total assets during those periods.

However, the overall trend shows a decline in ROA since 2022, with the ratio dropping below 5% from July 2023 onwards. This downward trend may suggest potential inefficiencies in asset utilization or declining profitability relative to the size of the company’s asset base.

It is essential for Guess? Inc. to closely monitor and address the factors impacting its ROA to ensure sustainable profitability and efficient use of assets in the future.