Urban Outfitters Inc (URBN)
Profitability ratios
Return on sales
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.71% | 33.52% | 29.76% | 32.84% | 24.98% |
| Operating profit margin | 8.54% | 7.53% | 4.73% | 8.98% | 0.12% |
| Pretax margin | 9.01% | 7.41% | 4.61% | 8.90% | 0.10% |
| Net profit margin | 7.25% | 5.58% | 3.33% | 6.83% | 0.04% |
The profitability ratios of Urban Outfitters Inc show a positive trend over the years, indicating improvements in the company's overall financial performance.
1. Gross Profit Margin: The gross profit margin has been increasing steadily from 24.98% in January 2021 to 34.71% in January 2025. This signifies that Urban Outfitters has been able to efficiently control its cost of goods sold and generate higher profit from its revenues.
2. Operating Profit Margin: The operating profit margin also displays a notable growth, rising from 0.12% in January 2021 to 8.54% in January 2025. This suggests that the company has been effectively managing its operating expenses and increasing its profitability from core business operations.
3. Pretax Margin: The pretax margin has shown a positive trend, climbing from 0.10% in January 2021 to 9.01% in January 2025. This indicates that Urban Outfitters has been successful in improving its operational efficiency and controlling its pre-tax earnings relative to its total revenue.
4. Net Profit Margin: The net profit margin exhibits a consistent increase over the years, growing from 0.04% in January 2021 to 7.25% in January 2025. This highlights the company's ability to enhance its bottom line profitability after accounting for all expenses, taxes, and other costs.
In conclusion, Urban Outfitters Inc has demonstrated significant enhancements in its profitability ratios, reflecting effective cost management, revenue generation, and overall financial performance improvement during the specified period.
Return on investment
| Jan 31, 2025 | Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.48% | 9.44% | 6.15% | 10.78% | 0.11% |
| Return on assets (ROA) | 8.91% | 7.00% | 4.34% | 8.19% | 0.03% |
| Return on total capital | 20.48% | 18.43% | 12.42% | 23.24% | 0.47% |
| Return on equity (ROE) | 16.28% | 13.62% | 8.91% | 17.79% | 0.08% |
Urban Outfitters Inc has shown an improvement in its profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has increased significantly from 0.11% in January 2021 to 10.48% in January 2025, indicating the company's ability to generate profits from its operating activities relative to its total assets.
Similarly, the Return on Assets (ROA) has also displayed a positive trend, rising from 0.03% in January 2021 to 8.91% in January 2025. This ratio measures the company's efficiency in generating profits from its total assets, and the improvement over time signifies better asset utilization.
The Return on Total Capital has seen a substantial increase from 0.47% in January 2021 to 20.48% in January 2025. This ratio reflects the company's ability to generate returns for both debt and equity providers, indicating effective capital management and higher profitability.
Lastly, the Return on Equity (ROE) has also shown improvement, increasing from 0.08% in January 2021 to 16.28% in January 2025. This ratio signifies the return generated for the company's shareholders relative to their equity investment, demonstrating an enhanced profitability and shareholder value creation by Urban Outfitters Inc.
Overall, the positive trend in profitability ratios indicates an improving financial performance and efficient utilization of resources by Urban Outfitters Inc over the analyzed period.