Signet Jewelers Ltd (SIG)
Operating return on assets (Operating ROA)
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 110,700 | 621,500 | 604,900 | 903,400 | -57,700 |
| Total assets | US$ in thousands | 5,726,600 | 6,813,200 | 6,620,400 | 6,575,100 | 6,178,900 |
| Operating ROA | 1.93% | 9.12% | 9.14% | 13.74% | -0.93% |
February 1, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $110,700K ÷ $5,726,600K
= 1.93%
Signet Jewelers Ltd's operating return on assets (ROA) has shown significant fluctuations over the past five fiscal years. In January 2021, the company reported a negative operating ROA of -0.93%, indicating that the company's operating income was insufficient to cover its assets. However, by January 2022, Signet Jewelers Ltd's operating ROA improved substantially to 13.74%, reflecting a strong operational performance and better asset utilization.
Subsequently, the operating ROA decreased to 9.14% in January 2023 and remained relatively stable at 9.12% in February 2024. This suggests that the company was able to maintain a decent level of operational efficiency and asset productivity during these periods.
However, there was a notable decline in Signet Jewelers Ltd's operating ROA to 1.93% by February 2025. This lower ROA indicates that the company's operating income generated from its assets decreased compared to the previous year, potentially signaling challenges in managing operational costs and asset efficiency.
In conclusion, while Signet Jewelers Ltd has demonstrated improvements in its operational ROA over the years, the recent decline in the ratio in February 2025 raises concerns about the company's ability to sustain profitability and optimize asset performance in the future.