Adtalem Global Education Inc (ATGE)

Operating return on assets (Operating ROA)

Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Operating income US$ in thousands 341,542 217,054 168,170 76,746 110,399
Total assets US$ in thousands 2,752,350 2,741,420 2,810,540 3,029,180 3,053,840
Operating ROA 12.41% 7.92% 5.98% 2.53% 3.62%

June 30, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $341,542K ÷ $2,752,350K
= 12.41%

The operating return on assets (ROA) for Adtalem Global Education Inc. demonstrates a notable increasing trend over the four-year period from June 30, 2021, to June 30, 2025. At the end of fiscal year 2021, the operating ROA was reported at 3.62%, indicating relatively modest efficiency in utilizing its assets to generate operating income. This figure declined significantly in the subsequent year, reaching 2.53% as of June 30, 2022, reflecting a downturn in operational performance or potential challenges impacting asset utilization.

Starting from fiscal year 2023, the operating ROA shows a marked improvement, rising to 5.98%, suggesting a recovery phase or operational efficiencies being restored. The upward momentum accelerates notably into fiscal year 2024, with the operating ROA increasing to 7.92%. This upward trajectory continues into fiscal year 2025, where the operating ROA reaches 12.41%, representing a substantial enhancement in operational profitability relative to the company's asset base.

Overall, the data indicates a positive trend in efficiency and profitability metrics for Adtalem, with the company progressively leveraging its assets more effectively to generate operating income. The improvement in operating ROA over this period reflects strategic adjustments, operational improvements, or favorable market conditions that have contributed to enhanced asset utilization and profitability.