Ethan Allen Interiors Inc (ETD)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 62,331 | 77,991 | 137,196 | 138,250 | 77,285 |
| Total assets | US$ in thousands | 737,099 | 744,917 | 745,453 | 719,895 | 683,245 |
| Operating ROA | 8.46% | 10.47% | 18.40% | 19.20% | 11.31% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $62,331K ÷ $737,099K
= 8.46%
The operating return on assets (ROA) for Ethan Allen Interiors Inc. demonstrates notable fluctuations over the analyzed period from June 30, 2021, through June 30, 2025. Specifically, the operating ROA increased significantly from 11.31% in 2021 to a peak of 19.20% in 2022, indicating improved operational efficiency and asset utilization during that year. However, in the subsequent year, the operating ROA experienced a slight decline to 18.40% in 2023, suggesting a marginal reduction in operating profitability relative to the company's assets.
This positive trend observed in 2022 may reflect successful strategic initiatives, sales growth, or expense management that enhanced operational profitability. The decrease in 2023 could be attributed to various factors such as increased operational costs, shifts in product demand, or competitive pressures, although specific causes would require further analysis of the company's income statement and asset utilization.
Moving into 2024, the operating ROA declined further to 10.47%, representing a significant reduction from the previous year's peak, which potentially indicates a deterioration in operational efficiency or asset management challenges. This downward trend continued into 2025, with the operating ROA diminishing to 8.46%, its lowest point within this period. The declining trajectory suggests that the company may be facing issues such as margin compression, increased expenses, or market constraints impacting overall operating performance.
In summary, Ethan Allen Interiors Inc. experienced a substantial improvement in operating ROA in 2022, followed by a steady decline over the subsequent years, culminating in 2025. The observed downward trend warrants further investigation into factors affecting operational profitability and asset efficiency to assess the company's long-term operational health.
Peer comparison
Jun 30, 2025