Flagship explainer

What drives AMERICAN EAGLE OUTFITTERS INC’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity11%Tax burden77%net income ÷ pretax incomeInterest burden110%pretax ÷ operating incomeOperating margin4%operating income ÷ revenueAsset turnover1.42×revenue ÷ average assetsEquity multiplier2.27×average assets ÷ average equityAs of 2026-01-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$192MFY2026
Income before tax$249MFY2026
Operating income$226MFY2026
$5.5BFY2026
Ending assets$4.0BFY2026
Beginning assets$3.8BFY2025
$1.7BFY2026
$1.8BFY2025
Source: · event Jan 31, 2026 · retrieved Jul 26, 2026 · annual-row source set
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AEO dupont explainer — Buy Like Buffett · Buy Like Buffett