Helen of Troy Ltd (HELE)
Operating return on assets (Operating ROA)
| Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | Feb 29, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 260,589 | 211,791 | 272,550 | 281,488 | 178,251 |
| Total assets | US$ in thousands | 2,838,620 | 2,913,720 | 2,823,450 | 2,263,490 | 1,903,880 |
| Operating ROA | 9.18% | 7.27% | 9.65% | 12.44% | 9.36% |
February 29, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $260,589K ÷ $2,838,620K
= 9.18%
Helen of Troy Ltd's operating return on assets (operating ROA) has fluctuated over the past five years. In the most recent fiscal year ending February 29, 2024, the operating ROA was 9.18%, showing an increase from the previous year's 7.27%. However, compared to the fiscal year ending February 28, 2021, where the operating ROA was 12.44%, the current figure represents a decrease. The company experienced relatively stable operating ROA levels in the fiscal years ending in 2020 and 2022, at 9.36% and 9.65% respectively.
The operating ROA ratio indicates how efficiently the company generates profits from its operational assets. Despite the fluctuations, Helen of Troy Ltd has maintained a positive trend in generating operating profits relative to its asset base. However, management may need to focus on optimizing asset utilization further to improve long-term profitability.