Acuity Brands Inc (AYI)
Return on assets (ROA)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 346,000 | 384,000 | 306,300 | 248,300 | 330,400 |
| Total assets | US$ in thousands | 3,408,500 | 3,480,200 | 3,575,100 | 3,491,700 | 3,172,400 |
| ROA | 10.15% | 11.03% | 8.57% | 7.11% | 10.41% |
August 31, 2023 calculation
ROA = Net income ÷ Total assets
= $346,000K ÷ $3,408,500K
= 10.15%
The return on assets (ROA) of Acuity Brands, Inc. has fluctuated over the past five years, as indicated by the data provided in the table.
In fiscal year 2019, the ROA was relatively high at 10.41%, signifying that the company generated a healthy return on its assets. This could suggest efficient utilization of the company's assets to generate profits.
Subsequently, in fiscal year 2020, there was a slight decrease in ROA to 7.11%. This dip may indicate a decrease in the company's ability to generate profits from its assets, which could be a cause for concern.
However, the following year saw an improvement in the company's performance, with the ROA increasing to 8.57%. This suggests that the company may have successfully enhanced its asset utilization to generate higher returns.
The trend continued in fiscal year 2022, with the ROA rising further to 11.03%, reflecting improved efficiency in generating profits from its assets.
In the most recent fiscal year, ending August 31, 2023, the ROA decreased slightly to 10.15%. While this is still a strong return, the decline from the previous year may indicate a potential challenge in maintaining or further improving asset efficiency.
Overall, the fluctuation in Acuity Brands, Inc.'s ROA over the past five years suggests varying levels of asset utilization and profitability. It is important for the company to continue monitoring and managing its assets effectively to ensure sustained profitability and growth.
Peer comparison
Aug 31, 2023