Urban Outfitters Inc (URBN)

Return on assets (ROA)

		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	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Net income (ttm)	US$ in thousands	287,674	271,385	225,602	180,983	159,699	169,189	220,813	288,602	310,616	298,238	286,087	193,225	1,236	-7,799	-28,851	-2,931	168,096	234,971	256,839	289,328
Total assets	US$ in thousands	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	3,315,630	3,320,590	3,138,040	3,251,820
ROA		7.00%	6.60%	5.68%	4.77%	4.34%	4.55%	6.04%	7.92%	8.19%	7.67%	7.64%	5.40%	0.03%	-0.22%	-0.84%	-0.09%	5.07%	7.08%	8.18%	8.90%

January 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $287,674K ÷ $4,111,210K
= 7.00%

The return on assets (ROA) of Urban Outfitters Inc has shown fluctuations over the past several quarters. The ROA increased from 4.34% in January 2023 to a peak of 8.19% in January 2022, indicating improved efficiency in generating profits from its assets. However, the ROA then decreased sharply to 0.03% in April 2021 and even turned negative in subsequent quarters, reaching as low as -0.84% in July 2020.

Subsequently, there was a significant recovery in ROA, with the ratio improving to 7.00% in January 2024. This rebound suggests that the company managed to enhance its profitability relative to its asset base in the most recent period.

Overall, the fluctuating trend in ROA for Urban Outfitters Inc indicates a certain level of volatility in its ability to generate profits from its assets in the past few quarters. It is essential for the company to sustain or further improve its ROA to ensure efficient utilization of its resources and continued financial performance.