Urban Outfitters Inc (URBN)

Return on equity (ROE)

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Net income	US$ in thousands	287,674	159,699	310,616	1,236	168,096
Total stockholders’ equity	US$ in thousands	2,112,540	1,792,680	1,745,740	1,477,360	1,455,360
ROE		13.62%	8.91%	17.79%	0.08%	11.55%

January 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $287,674K ÷ $2,112,540K
= 13.62%

Urban Outfitters Inc's return on equity (ROE) has fluctuated over the past five years. In 2024, the ROE stood at 13.62%, representing an increase compared to the previous year when it was 8.91%. This improvement suggests that the company was more efficient in generating profits from shareholders' equity in 2024.

In 2023, the ROE was relatively low at 8.91%, which was a decrease from the higher ROE of 17.79% in 2022. The significant drop in ROE from 2022 to 2023 could indicate a decrease in profitability or ineffective utilization of equity during that period.

The ROE was minimal at 0.08% in 2021, implying that the company's profitability was significantly low compared to the amount of equity invested by shareholders. However, there was an improvement in 2020, with an ROE of 11.55%, indicating better profit generation from equity that year.

Overall, Urban Outfitters Inc's ROE has experienced fluctuations, with varied levels of profitability relative to shareholders' equity. It is important for investors and analysts to further investigate the reasons behind these fluctuations to assess the company's financial performance and efficiency in utilizing equity.