Digi International Inc (DGII)

Return on assets (ROA)

		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	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	15,937	24,770	29,628	27,027	23,975	19,383	12,748	11,779	11,860	10,366	10,211	8,820	7,896	8,411	6,264	6,146	5,484	9,958	11,012	12,268
Total assets	US$ in thousands	828,662	835,531	840,060	847,748	854,610	853,895	863,639	869,530	866,230	619,531	613,051	607,503	528,788	528,682	526,869	554,752	560,904	398,698	385,246	383,535
ROA		1.92%	2.96%	3.53%	3.19%	2.81%	2.27%	1.48%	1.35%	1.37%	1.67%	1.67%	1.45%	1.49%	1.59%	1.19%	1.11%	0.98%	2.50%	2.86%	3.20%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $15,937K ÷ $828,662K
= 1.92%

Based on the data provided, Digi International, Inc.'s return on assets (ROA) has exhibited fluctuations over the eight quarters shown. ROA represents the company's ability to generate profits from its assets. The trend indicates a general increase in ROA from Q1 2022 to Q3 2023, with a peak of 3.53% recorded in Q3 2023.

However, there was a slight decline in Q4 2023 to 2.96%, followed by a further decrease to 1.92% in Q1 2024. This decline in ROA could be a cause for concern as it suggests that the company's ability to generate profits from its assets has weakened in recent quarters.

Overall, the fluctuating trend in ROA for Digi International, Inc. implies that the company's asset management efficiency and profitability have been inconsistent over the given period. Further analysis and monitoring of the company's financial performance and strategies may be necessary to understand the underlying factors contributing to these fluctuations in ROA.