Hillenbrand Inc (HI)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 569,700 | 208,900 | 249,900 | -60,100 | 121,400 |
| Total assets | US$ in thousands | 5,547,700 | 3,867,500 | 4,014,900 | 3,987,400 | 2,228,600 |
| ROA | 10.27% | 5.40% | 6.22% | -1.51% | 5.45% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $569,700K ÷ $5,547,700K
= 10.27%
Based on the data provided, Hillenbrand Inc's return on assets (ROA) has exhibited volatility over the past five years. The ROA for September 30, 2023, stands at 10.27%, reflecting an increase compared to the prior year's 5.40%. This signifies that the company generated a higher return on its assets in the most recent period.
In the year ending September 30, 2022, the ROA was 5.40%, demonstrating a significant improvement compared to the negative ROA of -1.51% in September 30, 2020. This indicates a positive turnaround in the company's asset management efficiency during that period.
However, it is important to note that the ROA was higher in September 30, 2019, at 5.45% compared to the ROA of 5.40% in September 2022. This suggests that while there was an improvement in the most recent year, the company's asset utilization was more effective in the 2019 period.
Overall, the trend in Hillenbrand Inc's ROA shows fluctuations over the past five years, indicating varying levels of effectiveness in utilizing its assets to generate profit. This analysis suggests that the company's efficiency in generating earnings from its assets has improved in the most recent year, but it is essential to monitor the trend over time to assess the company's asset management performance accurately.
Peer comparison
Sep 30, 2023