Williams-Sonoma Inc (WSM)
Operating return on assets (Operating ROA)
| Jan 28, 2024 | Jan 29, 2023 | Jan 30, 2022 | Jan 31, 2021 | Feb 2, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,244,190 | 1,498,420 | 1,453,120 | 910,697 | 465,874 |
| Total assets | US$ in thousands | 5,273,550 | 4,663,020 | 4,625,620 | 4,661,420 | 4,054,040 |
| Operating ROA | 23.59% | 32.13% | 31.41% | 19.54% | 11.49% |
January 28, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,244,190K ÷ $5,273,550K
= 23.59%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's operating efficiency in generating profits from its assets. Williams-Sonoma Inc's Operating ROA has fluctuated over the past five years.
In fiscal year 2024 (ending Jan 28, 2024), the company's Operating ROA was 23.59%, showing a decrease from the previous year's 32.13%. This decline indicates that Williams-Sonoma Inc's ability to generate profit from its operating assets weakened compared to the prior year.
Looking back at fiscal year 2023, Williams-Sonoma Inc achieved an Operating ROA of 32.13%, which was higher compared to fiscal year 2022's 31.41%. This improvement suggests that the company managed to enhance its profitability relative to the size of its asset base during that period.
In fiscal year 2021 and 2020, Williams-Sonoma Inc's Operating ROA was 19.54% and 11.49% respectively. The significant increase in Operating ROA from 11.49% in 2020 to 19.54% in 2021 denotes a notable improvement in profitability efficiency during that year.
Overall, the analysis of Williams-Sonoma Inc's Operating ROA trend indicates variability in the company's operating efficiency in generating profits from its assets over the past five years. The fluctuation in this ratio reflects changes in the company's operational performance and asset utilization, signifying areas where management may need to focus on enhancing operational effectiveness and optimizing asset utilization to drive profitability.