LCI Industries (LCII)

Return on assets (ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	64,195	49,443	84,948	206,052	394,974	494,432	496,441	409,800	287,739	254,103	259,049	204,346	158,440	138,554	106,016	140,357	146,509	137,881	135,884	135,581
Total assets	US$ in thousands	2,959,320	3,033,810	3,076,400	3,209,370	3,246,910	3,268,970	3,482,700	3,640,720	3,288,090	3,088,180	2,776,180	2,500,470	2,298,030	2,110,680	2,018,270	2,051,210	1,862,600	1,414,810	1,330,220	1,342,550
ROA		2.17%	1.63%	2.76%	6.42%	12.16%	15.13%	14.25%	11.26%	8.75%	8.23%	9.33%	8.17%	6.89%	6.56%	5.25%	6.84%	7.87%	9.75%	10.22%	10.10%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $64,195K ÷ $2,959,320K
= 2.17%

The return on assets (ROA) of LCI Industries has shown a declining trend over the past quarters, with Q4 2022 having the highest ROA of 12.16% followed by a gradual decrease to 2.17% in Q4 2023. This indicates that the company's ability to generate profit from its assets has been decreasing over time. The substantial drop in ROA from Q1 2023 (6.42%) to Q4 2023 (2.17%) is particularly noteworthy, suggesting a significant decline in profitability relative to the assets employed.

Further analysis and investigation into the underlying factors affecting LCI Industries' ROA trend, such as changes in asset utilization, profitability, and efficiency, are warranted to understand the reasons behind the diminishing returns. It is essential for the company to address these issues and implement strategies to enhance ROA and overall financial performance in the future.