Adtalem Global Education Inc (ATGE)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	237,065	136,777	93,358	310,991	70,027
Total assets	US$ in thousands	2,752,350	2,741,420	2,810,540	3,029,180	3,053,840
ROA		8.61%	4.99%	3.32%	10.27%	2.29%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $237,065K ÷ $2,752,350K
= 8.61%

The analysis of Adtalem Global Education Inc.'s return on assets (ROA) over the specified period reveals notable fluctuations. As of June 30, 2021, the ROA stood at 2.29%, indicating a relatively modest level of profitability generated from the company's asset base at that time. This figure saw a significant improvement by June 30, 2022, rising sharply to 10.27%, which suggests a substantial enhancement in either net income relative to total assets or efficiency in asset utilization during this period.

However, this positive trajectory was not sustained, as the ROA decreased to 3.32% by June 30, 2023. This decline points to a reduction in profitability or possible changes in asset management efficiency. Despite this downturn, the ROA demonstrated subsequent growth, reaching 4.99% on June 30, 2024. The upward trend continued with a further increase to 8.61% by June 30, 2025, approaching levels that indicate improved operational efficiency and profitability relative to the company's asset base.

Overall, the company's ROA experienced volatility over the analyzed period, with initial substantial growth followed by a decline and subsequent recovery. The upward trend observed towards the end of the period suggests an enhancement in asset utilization efficiency or improved net income generation, which could be driven by strategic initiatives, operational improvements, or favorable market conditions. Nonetheless, the variability underscores the importance of ongoing assessment to determine the consistency and sustainability of these profitability metrics.