Embecta Corp (EMBC)

Return on assets (ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Net income	US$ in thousands	78,300	70,400	223,600
Total assets	US$ in thousands	1,285,300	1,214,400	1,086,400
ROA		6.09%	5.80%	20.58%

September 30, 2024 calculation

ROA = Net income ÷ Total assets
= $78,300K ÷ $1,285,300K
= 6.09%

The return on assets (ROA) for Embecta Corp has shown a moderate increase over the past three years. In the most recent fiscal year ending September 30, 2024, the ROA was 6.09%, up from 5.80% in the previous year and significantly lower than the 20.58% reported in September 30, 2022.

The fluctuation in ROA indicates variations in the company's ability to generate profits relative to its total assets. The decrease in ROA from 2022 to 2023 may suggest a decline in asset efficiency or a decrease in profitability relative to the size of the asset base. However, the improvement in ROA in 2024 is a positive sign, indicating a better return on investment in assets compared to the prior year.

Further analysis is required to understand the factors influencing Embecta Corp's ROA performance, such as changes in revenue, expenses, asset management efficiency, or capital structure. Monitoring ROA over time can provide valuable insights into the company's financial health and efficiency in utilizing its assets to generate profits.