RH (RH)
Return on assets (ROA)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 72,412 | 127,561 | 127,561 | 528,642 | 528,642 |
| Total assets | US$ in thousands | 4,554,690 | 4,143,900 | 4,143,900 | 5,309,290 | 5,309,290 |
| ROA | 1.59% | 3.08% | 3.08% | 9.96% | 9.96% |
January 31, 2025 calculation
ROA = Net income ÷ Total assets
= $72,412K ÷ $4,554,690K
= 1.59%
The Return on Assets (ROA) is an important financial ratio that measures a company's ability to generate profits relative to its total assets. In the case of RH, the ROA has shown a declining trend over the past few years.
As of January 28, 2023 and January 31, 2023, RH had an ROA of 9.96%. This indicates that the company was able to generate a profit of approximately 9.96% for every dollar of assets it had during those periods.
However, the ROA declined significantly to 3.08% as of January 31, 2024 and February 3, 2024. This suggests that RH's profitability relative to its assets decreased during this period.
By January 31, 2025, the ROA further dropped to 1.59%, indicating a continued decline in RH's ability to generate profits from its assets.
Overall, the decreasing trend in RH's ROA suggests that the company may be facing challenges in efficiently utilizing its assets to generate earnings. It is important for RH to evaluate its asset management strategies and operational efficiency to improve its return on assets in the future.