Helen of Troy Ltd (HELE)
Operating return on assets (Operating ROA)
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 142,748 | 260,589 | 211,791 | 272,550 | 281,488 |
| Total assets | US$ in thousands | 3,132,080 | 2,838,620 | 2,913,720 | 2,823,450 | 2,263,490 |
| Operating ROA | 4.56% | 9.18% | 7.27% | 9.65% | 12.44% |
February 28, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $142,748K ÷ $3,132,080K
= 4.56%
Based on the provided data, Helen of Troy Ltd's operating return on assets (operating ROA) has shown a declining trend over the past five years.
Starting at 12.44% on February 28, 2021, the operating ROA dropped to 9.65% on February 28, 2022, indicating a decrease in the company's ability to generate operating income from its assets. The trend continued with further declines to 7.27% on February 28, 2023 and 4.56% on February 28, 2025.
However, there was a slight recovery to 9.18% on February 29, 2024, suggesting a temporary improvement in the company's operational efficiency in that particular period.
The decreasing trend in operating ROA could indicate challenges in the company's operational performance and efficiency in utilizing its assets effectively to generate profits. Investors and stakeholders may need to closely monitor Helen of Troy Ltd's strategies to address these issues and improve its operating ROA in the future.