RH (RH)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 366,071 | 722,157 | 927,181 | 466,858 | 362,831 |
| Total assets | US$ in thousands | 4,143,900 | 5,309,290 | 5,540,470 | 2,898,310 | 2,445,690 |
| Operating ROA | 8.83% | 13.60% | 16.73% | 16.11% | 14.84% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $366,071K ÷ $4,143,900K
= 8.83%
Operating ROA measures the efficiency of a company in generating operating profits from its total assets. RH's operating ROA has fluctuated over the past five years, declining from 16.11% in 2021 to 8.83% in 2024. This decrease might indicate a less efficient utilization of assets to generate operating income. While the 2024 operating ROA is lower compared to previous years, it is important to note that RH's operating ROA has generally been in the double-digit range, indicating a historically healthy return on assets. Further investigation into the company's operating performance and asset management efficiency may be necessary to fully understand the drivers behind the fluctuations in the operating ROA.
Peer comparison
Feb 3, 2024