Catalent Inc (CTLT)
Return on assets (ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -1,043,000 | -256,000 | 499,000 | 585,000 | 221,000 |
| Total assets | US$ in thousands | 9,753,000 | 10,777,000 | 10,508,000 | 9,112,000 | 7,777,000 |
| ROA | -10.69% | -2.38% | 4.75% | 6.42% | 2.84% |
June 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-1,043,000K ÷ $9,753,000K
= -10.69%
Catalent Inc's return on assets (ROA) has displayed a downward trend over the past five years. In particular, the ROA has decreased from 2.84% in June 2020 to -10.69% in June 2024. This signifies a substantial decline in the company's ability to generate profits from its assets.
A negative ROA indicates that the company is experiencing a loss relative to its asset base. The decreasing trend in ROA suggests a decline in the efficiency and profitability of Catalent Inc's asset utilization over the years. It is crucial for the company to address the declining ROA as it reflects potential inefficiencies in their operations or a mismanagement of assets.
Investors and stakeholders should closely monitor Catalent Inc's strategies and performance metrics related to asset management to understand the underlying reasons for the decreasing ROA and assess the company's financial health and prospects for future growth.
Peer comparison
Jun 30, 2024