DXC Technology Co (DXC)

Return on assets (ROA)

		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	Jun 30, 2019
Net income (ttm)	US$ in thousands	91,000	-465,000	-562,000	-634,000	-568,000	718,000	757,000	542,000	718,000	-610,000	390,000	334,000	-149,000	-2,846,000	-3,862,000	-5,737,000	-5,369,000	-1,600,000	-1,220,000	1,161,000
Total assets	US$ in thousands	13,871,000	14,892,000	14,709,000	15,293,000	15,845,000	18,254,000	17,737,000	18,647,000	20,139,000	19,953,000	20,115,000	20,867,000	22,038,000	23,634,000	25,670,000	27,894,000	26,006,000	29,599,000	29,516,000	32,577,000
ROA		0.66%	-3.12%	-3.82%	-4.15%	-3.58%	3.93%	4.27%	2.91%	3.57%	-3.06%	1.94%	1.60%	-0.68%	-12.04%	-15.04%	-20.57%	-20.65%	-5.41%	-4.13%	3.56%

March 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $91,000K ÷ $13,871,000K
= 0.66%

Return on assets (ROA) measures a company's ability to generate profit from its assets. DXC Technology Co's ROA has shown significant volatility over the past seven quarters.

In the most recent quarter, as of March 31, 2024, the company achieved an ROA of 0.66%, indicating that it generated a profit of 0.66 cents for every dollar of assets held. This marks a positive turn from the negative ROA figures reported in the previous quarters, with the lowest being -20.65% as of March 31, 2020.

The company experienced a notable improvement in ROA in the last two quarters of 2022, reaching 4.27% and 3.93%, respectively. These figures suggest that DXC Technology Co was efficiently using its assets to generate profit during that period.

However, prior to this positive trend, the company faced challenges with negative ROA values, indicating that it was not effectively utilizing its assets to generate profits. Notably, the ROA dropped to as low as -20.57% in June 2020, demonstrating a significant decline in profitability relative to its asset base.

Overall, DXC Technology Co's ROA has been volatile, with periods of both strong performance and challenges in asset utilization. It will be important for the company to sustain positive ROA figures to indicate efficient use of its assets and continued profitability.