Victoria's Secret & Co (VSCO)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 246,000 | 231,000 | 341,000 | 413,000 | 479,000 | 568,000 | 633,000 | 738,000 | |||
| Total assets | US$ in thousands | 4,600,000 | 4,687,000 | 4,525,000 | 4,405,000 | 4,711,000 | 4,142,000 | 4,072,000 | 4,065,000 | 4,344,000 | 4,369,000 | 4,658,000 |
| Operating ROA | 5.35% | 4.93% | 7.54% | 9.38% | 10.17% | 13.71% | 15.55% | 18.15% |
February 3, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $246,000K ÷ $4,600,000K
= 5.35%
The operating return on assets (ROA) for Victoria's Secret & Co has shown a declining trend over the past few quarters. The operating ROA decreased from 18.15% in April 2022 to 5.35% in February 2024. This suggests that the company's ability to generate operating profits from its assets has been weakening over time.
The significant drop in operating ROA from 15.55% in July 2022 to 5.35% in February 2024 is particularly concerning as it indicates a substantial reduction in the company's operating efficiency and profitability. This decline may be attributed to various factors such as increasing operating expenses, declining sales, or inefficiencies in asset utilization.
Overall, the decreasing trend in Victoria's Secret & Co's operating ROA raises questions about the company's operational effectiveness and highlights the need for management to address the underlying issues impacting its profitability and asset management.
Peer comparison
Feb 3, 2024