Urban Outfitters Inc (URBN)

Operating return on assets (Operating ROA)

Jan 31, 2025 Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020
Operating income (ttm) US$ in thousands 478,365 427,274 407,561 394,524 386,682 349,709 298,049 251,769 226,623 242,681 301,265 381,300 408,566 390,038 372,644 276,210 3,972 7,767 -15,472 -6,830
Total assets US$ in thousands 4,519,480 4,485,780 4,258,820 4,188,700 4,111,210 4,109,660 3,969,940 3,792,670 3,682,910 3,720,120 3,653,430 3,642,310 3,791,350 3,890,610 3,742,890 3,579,610 3,546,340 3,530,680 3,425,280 3,356,200
Operating ROA 10.58% 9.53% 9.57% 9.42% 9.41% 8.51% 7.51% 6.64% 6.15% 6.52% 8.25% 10.47% 10.78% 10.03% 9.96% 7.72% 0.11% 0.22% -0.45% -0.20%

January 31, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $478,365K ÷ $4,519,480K
= 10.58%

Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational activities relative to its total assets.

Analyzing the data provided for Urban Outfitters Inc, the Operating ROA shows fluctuating trends over the period. Starting from a negative trend in April 2020 and July 2020, the company gradually improved its performance, achieving positive Operating ROA figures from October 2020 onwards.

The period from April 2021 to January 2025 demonstrates a consistent uptrend in Urban Outfitters Inc's Operating ROA, indicating improved operational efficiency and profitability. The ratio increased from 7.72% in April 2021 to 10.58% in January 2025, showing a positive trajectory in utilizing assets to generate operating income.

Overall, the increasing trend in Operating ROA reflects Urban Outfitters Inc's ability to effectively utilize its assets to generate operating profits, signifying positive operational performance and efficiency within the company.