Victoria's Secret & Co (VSCO)
Return on equity (ROE)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 109,000 | 348,000 | 646,000 |
| Total stockholders’ equity | US$ in thousands | 417,000 | 383,000 | 257,000 |
| ROE | 26.14% | 90.86% | 251.36% |
February 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $109,000K ÷ $417,000K
= 26.14%
Victoria's Secret & Co's return on equity (ROE) has shown a significant decline over the past three years. Starting at an impressive 251.36% in January 2022, the ROE dropped to 90.86% in January 2023 and further decreased to 26.14% in February 2024.
This downward trend indicates a decreasing profitability relative to the shareholders' equity in the company. The declining ROE could imply that the company's efficiency in generating profits from its equity is weakening over time. It may suggest challenges in effectively utilizing the company's assets to generate returns for the shareholders.
Investors and analysts may want to further investigate the factors contributing to this decrease in ROE to assess the company's financial health and performance. Factors such as changes in profitability, asset utilization, and equity structure could be influencing the downward trajectory of Victoria's Secret & Co's return on equity.
Peer comparison
Feb 3, 2024