Helen of Troy Ltd (HELE)
Return on assets (ROA)
| Feb 28, 2025 | Nov 30, 2024 | Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 123,751 | 115,568 | 141,850 | 152,217 | 168,594 | 162,040 | 137,968 | 141,259 | 143,273 | 146,887 | 170,744 | 191,387 | 223,764 | 206,142 | 214,614 | 250,632 | 253,946 | 228,619 | 213,163 | 171,925 |
| Total assets | US$ in thousands | 3,132,080 | 2,973,130 | 2,880,380 | 2,820,950 | 2,838,620 | 2,952,290 | 2,901,660 | 2,872,830 | 2,913,720 | 3,129,420 | 3,225,210 | 3,144,250 | 2,823,450 | 2,487,400 | 2,400,160 | 2,348,090 | 2,263,490 | 2,311,740 | 2,174,190 | 1,975,690 |
| ROA | 3.95% | 3.89% | 4.92% | 5.40% | 5.94% | 5.49% | 4.75% | 4.92% | 4.92% | 4.69% | 5.29% | 6.09% | 7.93% | 8.29% | 8.94% | 10.67% | 11.22% | 9.89% | 9.80% | 8.70% |
February 28, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $123,751K ÷ $3,132,080K
= 3.95%
Helen of Troy Ltd's return on assets (ROA) has shown fluctuations over the past few years. As of February 28, 2025, the ROA stood at 3.95%, which indicates that the company generated 3.95 cents of profit for every dollar of assets it owns.
The ROA has been on a downward trend from a peak of 11.22% on February 28, 2021, to the current level of 3.95% on February 28, 2025. This decline could be a cause for concern as it suggests that the company is becoming less effective at generating profits from its assets.
It is crucial for stakeholders to monitor the ROA closely as it provides insights into the company's efficiency in utilizing its assets to generate profits. A declining ROA may signify issues such as declining profitability, operational inefficiencies, or an increase in asset base without a corresponding increase in profits.
Overall, Helen of Troy Ltd's ROA trend indicates a need for further analysis to identify the underlying reasons for the decline and to implement strategies to improve asset utilization and profitability in the future.