Helen of Troy Ltd (HELE)
Return on assets (ROA)
| Feb 28, 2025 | Feb 29, 2024 | Feb 28, 2023 | Feb 28, 2022 | Feb 28, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 123,751 | 168,594 | 143,273 | 223,764 | 253,946 |
| Total assets | US$ in thousands | 3,132,080 | 2,838,620 | 2,913,720 | 2,823,450 | 2,263,490 |
| ROA | 3.95% | 5.94% | 4.92% | 7.93% | 11.22% |
February 28, 2025 calculation
ROA = Net income ÷ Total assets
= $123,751K ÷ $3,132,080K
= 3.95%
The return on assets (ROA) for Helen of Troy Ltd has shown a decreasing trend over the five-year period from February 28, 2021, to February 28, 2025. The ROA decreased from 11.22% in 2021 to 3.95% in 2025. This decline in ROA indicates that the company's ability to generate profits from its assets has decreased over time.
A higher ROA signifies that the company is more efficient in utilizing its assets to generate profits, while a lower ROA suggests a decrease in asset efficiency. In the case of Helen of Troy Ltd, the decreasing ROA may be attributed to various factors such as increased expenses, lower revenue generation, or suboptimal utilization of assets.
Investors and stakeholders often monitor ROA as it provides insights into the company's profitability relative to its assets. The declining trend in ROA for Helen of Troy Ltd may raise concerns about the company's operational efficiency and future profitability. It is essential for the company's management to address the factors contributing to the decline in ROA and implement strategies to improve asset utilization and profitability in order to drive long-term value creation for shareholders.