Urban Outfitters Inc (URBN)

Operating return on assets (Operating ROA)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Operating income	US$ in thousands	369,795	226,623	408,566	3,972	231,925
Total assets	US$ in thousands	4,111,210	3,682,910	3,791,350	3,546,340	3,315,630
Operating ROA		8.99%	6.15%	10.78%	0.11%	6.99%

January 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $369,795K ÷ $4,111,210K
= 8.99%

Urban Outfitters Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years. In the most recent fiscal year, as of Jan 31, 2024, the operating ROA stood at 8.99%, indicating that the company generated approximately $8.99 in operating income for every $100 of assets. This represents an improvement compared to the prior year, where the operating ROA was 6.15%.

Looking further back, the operating ROA was significantly higher at 10.78% in Jan 31, 2022, indicating strong operating efficiency and asset utilization during that period. However, in Jan 31, 2021, the operating ROA was very low at 0.11%, suggesting poor operational performance relative to its asset base.

Overall, the trend in operating ROA for Urban Outfitters Inc has been mixed, with fluctuations in performance over the years. It is important for the company to assess the reasons behind these fluctuations to ensure sustainable and efficient utilization of its assets in generating operating income.