Leslies Inc (LESL)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | 57,117 | 102,179 | 238,754 | 209,085 |
| Total assets | US$ in thousands | 1,050,320 | 1,034,440 | 1,109,630 | 1,042,230 |
| Operating ROA | 5.44% | 9.88% | 21.52% | 20.06% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $57,117K ÷ $1,050,320K
= 5.44%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates how efficiently a company generates operating income relative to its total assets.
Analyzing the trend in Leslies Inc's Operating ROA over the past four years, we observe a decline from 20.06% in 2021 to 5.44% in 2024. This significant decrease suggests a decreasing ability of the company to generate operating income from its assets.
The substantial decrease in Operating ROA could be attributed to various factors such as inefficient asset utilization, declining operating income, or an increase in total assets without a proportionate increase in operating income. It could also signal potential operational inefficiencies within the company.
It is crucial for Leslies Inc to closely evaluate the causes behind this decline in Operating ROA and take necessary steps to improve asset efficiency and operating income generation. By improving these aspects, the company can enhance its profitability and overall financial performance in the coming years.
Peer comparison
Sep 30, 2024