Ethan Allen Interiors Inc (ETD)
Return on assets (ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 51,596 | 63,816 | 105,807 | 103,280 | 60,005 |
| Total assets | US$ in thousands | 737,099 | 744,917 | 745,453 | 719,895 | 683,245 |
| ROA | 7.00% | 8.57% | 14.19% | 14.35% | 8.78% |
June 30, 2025 calculation
ROA = Net income ÷ Total assets
= $51,596K ÷ $737,099K
= 7.00%
The analysis of Ethan Allen Interiors Inc.'s return on assets (ROA) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and trends. As of June 30, 2021, the ROA stood at 8.78%, indicating moderate efficiency in utilizing assets to generate net income. Subsequently, there was a substantial increase in ROA to 14.35% by June 30, 2022, representing nearly a doubling of asset efficiency within a one-year period. This upward movement suggests an improvement in profitability relative to the company's asset base.
The ROA remained relatively stable from June 30, 2022, to June 30, 2023, with a slight decline to 14.19%. This minor reduction may reflect a stabilization in asset utilization efficiency following the significant gains observed the previous year. Moving forward, the ROA declined considerably to 8.57% by June 30, 2024, effectively halving from its peak in the prior year, which could be indicative of increased asset base without proportional growth in net income or a decline in profitability.
Continuing this downward trend, the ROA further decreased to 7.00% by June 30, 2025. This sustained decline over the two years suggests a pattern of diminishing asset efficiency and profitability relative to asset utilization. The overall trajectory indicates that after a period of rapid improvement, the company experienced a significant and sustained decrease in the effectiveness of its assets in generating profit, potentially pointing to operational challenges, increased asset base without commensurate revenue growth, or external market factors affecting performance.
In summary, Ethan Allen Interiors Inc. experienced a pronounced improvement in ROA during the fiscal year ending June 30, 2022, followed by a stabilization and then a notable decline in subsequent years. This pattern underscores the importance of examining underlying operational and market factors to fully understand the causes behind these fluctuations.
Peer comparison
Jun 30, 2025