Shoe Carnival Inc (SCVL)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 91,152 | 97,084 | 92,524 | 90,380 | 95,808 | 100,501 | 105,194 | 98,198 | 91,202 | 95,234 | 99,266 | 121,904 | 144,542 | 154,637 | 164,732 | 156,539 | 140,875 | 129,999 | 153,634 | 180,674 |
| Total assets | US$ in thousands | 1,124,130 | 1,124,430 | 1,115,030 | 1,092,580 | 1,042,020 | 1,134,740 | 1,023,470 | 1,023,470 | 1,043,200 | 1,043,200 | 976,629 | 976,629 | 989,781 | 989,781 | 966,336 | 966,336 | 914,515 | 914,515 | 861,734 | 812,264 |
| Operating ROA | 8.11% | 8.63% | 8.30% | 8.27% | 9.19% | 8.86% | 10.28% | 9.59% | 8.74% | 9.13% | 10.16% | 12.48% | 14.60% | 15.62% | 17.05% | 16.20% | 15.40% | 14.22% | 17.83% | 22.24% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $91,152K ÷ $1,124,130K
= 8.11%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company is generating profits from its assets used in operations. It is calculated by dividing operating income by average total assets.
Analyzing Shoe Carnival Inc's Operating ROA over the past few years, we observe a general downward trend. In January 2022, the Operating ROA stood at a healthy 22.24%, indicating that the company was generating significant operating profits relative to its assets. However, this ratio decreased steadily, reaching 8.11% by January 2025.
The decline in Operating ROA suggests that Shoe Carnival Inc may be facing challenges in generating sufficient operating income from its assets. This could be a result of operational inefficiencies, rising expenses, or a decrease in revenue relative to the assets employed.
It is essential for the company to assess the factors contributing to this decline in Operating ROA and take necessary steps to improve operational efficiency and profitability. By monitoring and analyzing this ratio regularly, Shoe Carnival Inc can make strategic decisions to enhance asset utilization and overall financial performance.
Peer comparison
Jan 31, 2025