Ethan Allen Interiors Inc (ETD)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 77,991 | 87,053 | 100,516 | 115,897 | 137,196 | 890,616 | 894,481 | 893,704 | 881,414 | 120,367 | 106,701 | 92,964 | 77,285 | 40,776 | 21,035 | 7,684 | 14,644 | 22,442 | 33,865 | 40,789 |
| Total assets | US$ in thousands | 744,917 | 742,216 | 722,175 | 739,563 | 745,453 | 741,323 | 713,981 | 721,849 | 719,895 | 714,903 | 689,328 | 678,294 | 683,245 | 687,546 | 636,219 | 622,521 | 622,789 | 703,104 | 621,927 | 653,899 |
| Operating ROA | 10.47% | 11.73% | 13.92% | 15.67% | 18.40% | 120.14% | 125.28% | 123.81% | 122.44% | 16.84% | 15.48% | 13.71% | 11.31% | 5.93% | 3.31% | 1.23% | 2.35% | 3.19% | 5.45% | 6.24% |
June 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $77,991K ÷ $744,917K
= 10.47%
Operating ROA is a key financial ratio that indicates a company's ability to generate profits from its assets used in operations. In the case of Ethan Allen Interiors Inc, the operating ROA has displayed considerable volatility over the historical period provided.
The operating ROA for Ethan Allen Interiors Inc has ranged from as low as 1.23% to as high as 125.28% during the period from September 2019 to June 2024. This significant fluctuation suggests varying levels of efficiency in utilizing assets to generate operating profits.
The trend indicates that there was a sudden and significant spike in operating ROA in the first quarter of 2023 and the following quarter, as the ratio jumped to exceptionally high levels of 120.14% and 125.28%, respectively. This is likely due to unusual or one-time factors impacting the profitability of the company during these periods, such as extraordinary gains or losses.
After those extraordinary spikes, the operating ROA reverted to more normal levels, ranging between 10.47% to 18.40% since September 2023. Despite the volatility, the operating ROA generally stayed above 5%, indicating that Ethan Allen Interiors Inc has generally been able to generate positive returns from its operational assets.
In conclusion, the operating ROA of Ethan Allen Interiors Inc has been fluctuating significantly, with some periods of exceptionally high values, possibly influenced by exceptional factors. Investors and stakeholders should carefully analyze the company's operational efficiency and profitability drivers to fully understand the implications of the fluctuating operating ROA.