Movado Group Inc (MOV)
Operating return on assets (Operating ROA)
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 54,705 | 120,354 | 117,491 | -142,127 | 42,991 |
| Total assets | US$ in thousands | 769,082 | 787,705 | 761,160 | 719,257 | 847,308 |
| Operating ROA | 7.11% | 15.28% | 15.44% | -19.76% | 5.07% |
January 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $54,705K ÷ $769,082K
= 7.11%
Movado Group Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In Jan 31, 2024, the operating ROA was 7.11%, indicating that the company generated 7.11 cents of operating income for every dollar of assets it had.
Comparing this to the previous years, we observe a decline from the high of 15.44% in Jan 31, 2022 and 15.28% in Jan 31, 2023. The significant drop to -19.76% in Jan 31, 2021 indicates that the company's operating income was negative relative to its assets during that period. However, the company recovered in Jan 31, 2020 with a positive operating ROA of 5.07%.
The fluctuation in operating ROA suggests variations in the company's operational efficiency and profitability over the years. It is essential for Movado Group Inc to assess the factors contributing to these fluctuations and take necessary actions to improve its operating performance in order to enhance its return on assets.