Urban Outfitters Inc (URBN)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	402,462	329,912	310,015	296,622	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
Total stockholders’ equity	US$ in thousands	2,471,500	2,352,920	2,241,430	2,162,330	2,112,540	2,046,560	1,967,390	1,850,680	1,792,680	1,738,390	1,707,190	1,695,920	1,745,740	1,746,730	1,669,420	1,534,510	1,477,360	1,431,320	1,350,590	1,298,110
ROE		16.28%	14.02%	13.83%	13.72%	13.62%	13.26%	11.47%	9.78%	8.91%	9.73%	12.93%	17.02%	17.79%	17.07%	17.14%	12.59%	0.08%	-0.54%	-2.14%	-0.23%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $402,462K ÷ $2,471,500K
= 16.28%

The return on equity (ROE) of Urban Outfitters Inc has shown fluctuations over the past few years based on the provided data.

From April 2020 to January 2021, the ROE was negative, indicating that the company's net income was insufficient to generate a positive return for its shareholders.

However, starting from April 2021, the ROE turned positive and has been steadily increasing, reaching a peak of 16.28% by January 2025. This improvement suggests that Urban Outfitters Inc has been effectively utilizing its shareholders' equity to generate profits.

Overall, the upward trend in ROE indicates an improvement in the company's profitability and efficiency in generating returns for its shareholders. It suggests that Urban Outfitters Inc has been successful in increasing its net income relative to its equity, which is a positive sign for investors and the company's overall financial health.