Enerpac Tool Group Corp (EPAC)
Return on assets (ROA)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 46,561 | 15,686 | 38,077 | 723 | -249,145 |
| Total assets | US$ in thousands | 762,597 | 757,312 | 820,247 | 824,294 | 1,124,270 |
| ROA | 6.11% | 2.07% | 4.64% | 0.09% | -22.16% |
August 31, 2023 calculation
ROA = Net income ÷ Total assets
= $46,561K ÷ $762,597K
= 6.11%
To analyze Enerpac Tool Group Corp's return on assets (ROA) over the past five years, we can observe a fluctuating trend.
The ROA increased from 0.09% in 2020 to 4.64% in 2021, indicating an improvement in the company's ability to generate profit relative to its total assets. This increase was followed by a further rise to 6.11% in 2023, reflecting continued positive momentum.
The surge in ROA from negative territory in 2019 to positive figures in 2020 and subsequent years demonstrates enhanced efficiency in asset utilization and reflects favorably on the company's management of its resources.
These positive movements in ROA may indicate improved profitability and the potential for increased shareholder value. It would be important to assess the underlying drivers of these changes, particularly in terms of revenue growth, cost management, and asset utilization, to gain a comprehensive understanding of the company's performance.
Peer comparison
Aug 31, 2023