Insteel Industries Inc (IIIN)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 19,305 | 32,415 | 125,011 | 66,610 | 19,009 |
| Total assets | US$ in thousands | 422,552 | 447,513 | 471,745 | 390,710 | 337,902 |
| ROA | 4.57% | 7.24% | 26.50% | 17.05% | 5.63% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $19,305K ÷ $422,552K
= 4.57%
Insteel Industries Inc's Return on Assets (ROA) has exhibited fluctuating trends over the past five years. The ROA decreased from 5.63% in 2020 to 4.57% in 2024, indicating a decline in the company's ability to generate profits relative to its total assets. This downward trend suggests a potential inefficiency in asset utilization or declining profitability.
In contrast, there was a significant spike in ROA to 26.50% in 2022, which could be attributed to improved efficiency in utilizing assets or a boost in profitability during that year. However, this exceptional performance was not sustained in the subsequent years, as seen in the decreasing ROA figures.
The ROA of 7.24% in 2023 and 17.05% in 2021 indicates moderate profitability relative to total assets, but these figures are lower compared to the peak in 2022. Overall, Insteel Industries Inc's ROA performance reflects fluctuations in profitability and asset utilization efficiency over the five-year period. Further analysis of the company's financial health and operational strategies may be warranted to understand the factors driving these fluctuations.
Peer comparison
Sep 30, 2024