Embecta Corp (EMBC)

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
Net income (ttm)	US$ in thousands	55,300	70,400	-18,600	28,600	94,200	157,800
Total assets	US$ in thousands	1,217,800	1,214,400	1,252,100	1,210,000	1,196,900	1,086,400	1,049,800	833,500	739,900
ROA		4.54%	5.80%	-1.49%	2.36%	7.87%	14.53%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $55,300K ÷ $1,217,800K
= 4.54%

Embecta Corp's return on assets (ROA) has fluctuated over the past nine quarters, indicating varying levels of efficiency in generating profits from its assets. In the latest quarter, ending December 31, 2023, the ROA stood at 4.54%, showing a decrease from the previous quarter's figure of 5.80%. This suggests a potential decline in the company's ability to utilize its assets effectively to generate profits.

Looking back further, the ROA was negative in the second quarter of 2023 at -1.49%, indicating that the company experienced losses relative to its asset base during that period. However, in the first quarter of 2023, the ROA improved to 2.36%, signaling a partial recovery in asset profitability.

The highest ROA in the provided data was observed in the third quarter of 2022 at 14.53%, indicating a period of strong asset utilization and profitability for Embecta Corp. This was followed by a significant decrease in the ROA in the subsequent quarter, ending December 31, 2022, to 7.87%.

Overall, the trend in Embecta Corp's ROA suggests a degree of volatility in the company's ability to generate profits relative to its asset base. Further investigation into the factors driving these fluctuations, such as changes in revenue, expenses, or asset management strategies, would be necessary to fully understand the dynamics behind the company's ROA performance.