Insteel Industries Inc (IIIN)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 32,415 | 125,011 | 66,610 | 19,009 | 5,598 |
| Total assets | US$ in thousands | 447,513 | 471,745 | 390,710 | 337,902 | 293,009 |
| ROA | 7.24% | 26.50% | 17.05% | 5.63% | 1.91% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $32,415K ÷ $447,513K
= 7.24%
Insteel Industries, Inc.'s return on assets (ROA) has exhibited fluctuations over the past five years. The ROA was 7.24% as of September 30, 2023, representing a decrease from the 26.50% reported on October 1, 2022. This decrease may indicate a decline in the company's ability to generate profits from its assets compared to the previous period. However, the ROA of 7.24% is still higher than the 5-year low of 1.91% reported on September 28, 2019, suggesting improved asset utilization compared to the previous year.
The ROA peaked at 26.50% as of October 1, 2022, indicating a strong ability to generate profits relative to the size of its asset base. This may suggest efficient asset management and effective capital allocation during that period.
The 5-year average ROA is approximately 11.87%, indicating that, on average, Insteel Industries has been able to generate a return of approximately 11.87 cents on every dollar of assets during the period. Overall, the fluctuations in ROA highlight the company's varying performance in generating profits relative to its asset base over the past five years. Further analysis of the company's financial and operational aspects would be necessary to understand the underlying factors contributing to these fluctuations.
Peer comparison
Sep 30, 2023