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Foot Locker ROA %

: 22.89% (As of Jul. 2021)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Foot Locker's annualized Net Income for the quarter that ended in Jul. 2021 was $1,720 Mil. Foot Locker's average Total Assets over the quarter that ended in Jul. 2021 was $7,514 Mil. Therefore, Foot Locker's annualized ROA % for the quarter that ended in Jul. 2021 was 22.89%.

The historical rank and industry rank for Foot Locker's ROA % or its related term are showing as below:

NYSE:FL' s ROA % Range Over the Past 10 Years
Min: 4.74   Med: 12.45   Max: 17.44
Current: 14.17

4.74
17.44

During the past 13 years, Foot Locker's highest ROA % was 17.44%. The lowest was 4.74%. And the median was 12.45%.

NYSE:FL's ROA % is ranked higher than
92% of the 1076 Companies
in the Manufacturing - Apparel & Accessories industry.

( Industry Median: 1.84 vs. NYSE:FL: 14.17 )

Foot Locker ROA % Historical Data

The historical data trend for Foot Locker's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Foot Locker Annual Data
Trend Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.44 7.28 13.91 9.43 4.74

Foot Locker Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.63 15.22 7.00 11.16 22.89

Competitive Comparison

For the Footwear & Accessories industry, Foot Locker's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Foot Locker ROA % Distribution

For the Footwear & Accessories industry and Consumer Cyclical sector, Foot Locker's ROA % distribution charts can be found below:

* The bar in red indicates where Foot Locker's ROA % falls into.



Foot Locker ROA % Calculation

Foot Locker's annualized ROA % for the fiscal year that ended in Jan. 2021 is calculated as:

ROA %=Net Income (A: Jan. 2021 )/( (Total Assets (A: Jan. 2020 )+Total Assets (A: Jan. 2021 ))/ count )
=323/( (6589+7043)/ 2 )
=323/6816
=4.74 %

Foot Locker's annualized ROA % for the quarter that ended in Jul. 2021 is calculated as:

ROA %=Net Income (Q: Jul. 2021 )/( (Total Assets (Q: Apr. 2021 )+Total Assets (Q: Jul. 2021 ))/ count )
=1720/( (7442+7585)/ 2 )
=1720/7513.5
=22.89 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jul. 2021) net income data. ROA % is displayed in the 30-year financial page.


Foot Locker  (NYSE:FL) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jul. 2021 )
=Net Income/Total Assets
=1720/7513.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1720 / 9100)*(9100 / 7513.5)
=Net Margin %*Asset Turnover
=18.9 %*1.2112
=22.89 %

Note: The Net Income data used here is four times the quarterly (Jul. 2021) net income data. The Revenue data used here is four times the quarterly (Jul. 2021) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Foot Locker ROA % Related Terms

Thank you for viewing the detailed overview of Foot Locker's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Foot Locker Business Description

Foot Locker logo
Traded in Other Exchanges
Address
330 West 34th Street, New York, NY, USA, 10001
Foot Locker Inc operates thousands of retail stores throughout the United States, Canada, Europe, Australia, and New Zealand. It also has one franchisee in the Middle East and one in South Korea, each of which operates multiple stores in those regions. The company mainly sells athletically inspired shoes and apparel. Foot Locker's merchandise comes from only a few suppliers, with Nike providing the majority. Store names include Foot Locker, Champs, and Runners Point. The company also has an e-commerce business selling through Footlocker.com, Eastbay, and Final-Score.
Executives
Verma Pawan officer: EVP & Chief Info & Cust Conn C/O FOOT LOCKER, INC. 112 WEST 34TH STREET NEW YORK NY 10120
Martin William Scott officer: EVP & CEO Asia & Chief Strat 330 WEST 34TH STREET NEW YORK NY 10001
Bracken Franklin officer: Executive VP CEO North America 330 WEST 34TH STREET NEW YORK NY 10001
Gray Andrew officer: Executive VP and CCO 330 WEST 34TH STREET NEW YORK NY 10001
Nicosia Darlene director 330 WEST 34TH STREET NEW YORK NY 10001
Walker Tristan director 330 WEST 34TH STREET NEW YORK NY 10001
Feldman Alan D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: FELDMAN ALAN D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Oakland Steven director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: OAKLAND STEVEN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Mckenna Matthew M director 700 ANDERSON HILL RD PURCHASE NY 10577
Underhill Kimberly K director 351 PHELPS DRIVE IRVING TX 75038
Young Dona D director C/O FOOT LOCKER, INC. 112 WEST 34TH STREET NEW YORK NY 10120
Marmol Guillermo director C/O FOOT LOCKER, INC. 112 WEST 34TH STREET NEW YORK NY 10120
Clark Maxine director 330 W. 34TH STREET, 4TH FLOOR NEW YORK NY 10001
Turpin Cheryl N director FOOT LOCKER INC 112 WEST 34TH STREET 4TH FL NEW YORK NY 10120
Talwar Vijay officer: EVP & CEO, EMEA 705 FIFTH AVENUE SOUTH SUITE 900 SEATTLE WA 98104

Foot Locker Headlines

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