Signet Jewelers Ltd (SIG)
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 | 621,500 | 604,900 | 903,400 | -57,700 | 158,300 |
| Total assets | US$ in thousands | 6,813,200 | 6,620,400 | 6,575,100 | 6,178,900 | 6,299,100 |
| Operating ROA | 9.12% | 9.14% | 13.74% | -0.93% | 2.51% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $621,500K ÷ $6,813,200K
= 9.12%
Signet Jewelers Ltd's trend in operating return on assets (ROA) over the past five years reveals fluctuations in performance. The company experienced a positive operating ROA of 9.12% in Feb 3, 2024, slightly lower than the 9.14% reported in Jan 28, 2023. However, comparing these figures to the higher operating ROA of 13.74% in Jan 29, 2022, there was a noticeable decline in profitability.
The financial performance in Jan 30, 2021, resulted in a negative operating ROA of -0.93%, indicating operational inefficiencies and potential challenges faced by the company during that period. This negative return was followed by an improvement as evidenced by the operating ROA of 2.51% in Feb 1, 2020.
It is important for Signet Jewelers Ltd to analyze the factors contributing to these fluctuations in operating ROA to identify areas requiring improvement and to sustain financial health and profitability in the future.