Adtalem Global Education Inc (ATGE)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	217,054	188,088	185,792	172,730	168,170	173,142	146,662	125,846	80,149	62,696	65,708	70,038	118,052	407,120	322,158	229,650	111,713	271,239	256,594	293,420
Total assets	US$ in thousands	2,741,420	2,715,030	2,700,920	2,794,160	2,810,540	2,867,120	2,843,040	2,996,050	3,030,240	3,519,920	3,659,770	3,799,060	3,084,840	3,061,780	2,274,880	2,329,900	2,258,060	2,444,020	2,390,610	2,460,320
Operating ROA		7.92%	6.93%	6.88%	6.18%	5.98%	6.04%	5.16%	4.20%	2.64%	1.78%	1.80%	1.84%	3.83%	13.30%	14.16%	9.86%	4.95%	11.10%	10.73%	11.93%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $217,054K ÷ $2,741,420K
= 7.92%

Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profits from its assets used in operations. Adtalem Global Education Inc's operating ROA has shown fluctuations over the past several quarters.

From December 2019 to June 2020, the operating ROA ranged between 10.73% and 14.16%, indicating a period of strong profitability relative to the assets employed in operations. Subsequently, there was a dip in the operating ROA to 4.95% in September 2020, suggesting a decrease in profitability efficiency.

The operating ROA improved in the following quarters, reaching 7.92% in June 2024. The consistent increase from 1.78% in March 2022 to 7.92% in June 2024 reflects a positive trend in the company's ability to generate earnings through its operational assets.

Overall, the fluctuating trend in Adtalem Global Education Inc's operating ROA highlights the importance of closely monitoring profitability efficiency in relation to the assets utilized in operations.