Victoria's Secret & Co (VSCO)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | 246,000 | 478,000 | 870,000 |
| Total assets | US$ in thousands | 4,600,000 | 4,711,000 | 4,344,000 |
| Operating ROA | 5.35% | 10.15% | 20.03% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $246,000K ÷ $4,600,000K
= 5.35%
Victoria's Secret & Co's operating return on assets (operating ROA) has declined over the past three years, from 20.03% in January 2022 to 10.15% in January 2023, and further to 5.35% in February 2024. This downward trend indicates a decreasing efficiency in generating operating income relative to its total assets. The decreasing operating ROA could be a signal of declining operational performance or increasing asset base without a proportionate increase in operating income. Further investigation into the company's operating efficiency and asset utilization may be necessary to understand the underlying reasons for this trend and to implement corrective measures if needed.
Peer comparison
Feb 3, 2024