Williams-Sonoma Inc (WSM)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,464,528 | 1,393,967 | 1,531,415 | 1,556,576 | 1,547,825 | 1,359,793 | 1,173,250 | 1,057,650 | 1,212,360 | 1,410,599 | 1,478,684 | 1,618,840 | 1,514,574 | 1,368,268 | 1,352,116 | 1,537,055 | 1,696,106 | 1,702,892 | 1,702,511 | 1,501,039 |
| Total assets | US$ in thousands | 5,301,610 | 4,968,340 | 5,211,670 | 5,159,980 | 5,273,550 | 5,273,550 | 4,883,770 | 4,883,770 | 4,571,810 | 4,571,810 | 4,471,040 | 4,663,020 | 4,663,020 | 4,594,010 | 4,594,010 | 4,319,170 | 4,210,710 | 4,210,710 | 4,625,620 | 4,625,620 |
| Operating ROA | 27.62% | 28.06% | 29.38% | 30.17% | 29.35% | 25.79% | 24.02% | 21.66% | 26.52% | 30.85% | 33.07% | 34.72% | 32.48% | 29.78% | 29.43% | 35.59% | 40.28% | 40.44% | 36.81% | 32.45% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,464,528K ÷ $5,301,610K
= 27.62%
Operating ROA measures how efficiently Williams-Sonoma Inc is generating profits from its assets used in operations. The trend of the operating ROA from January 30, 2022, to January 31, 2025, shows fluctuations. The operating ROA started at a strong level of 32.45% in January 2022 and reached its peak at 40.44% in April 2022. Subsequently, it slightly decreased before increasing again to around 34-36% until January 2023.
However, from July 2023 onwards, the operating ROA experienced a downward trend, declining to 21.66% by October 2023. This decline continued until January 2025, with the operating ROA at 27.62%. The decreasing trend indicates a potential decrease in efficiency in generating profits from the assets used in operations over the period. Further analysis is recommended to understand the reasons behind this decline and identify potential areas for improvement in operational efficiency.