Leslies Inc (LESL)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | 102,179 | 238,754 | 209,085 |
| Total assets | US$ in thousands | 1,034,440 | 1,109,630 | 1,042,230 |
| Operating ROA | 9.88% | 21.52% | 20.06% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $102,179K ÷ $1,034,440K
= 9.88%
The operating return on assets (operating ROA) for Leslies Inc has shown a decreasing trend over the three-year period from 2021 to 2023. In 2021, the operating ROA was 20.06%, which then decreased to 21.52% in 2022 and further dropped to 9.88% in 2023. This decline indicates a decreasing efficiency in generating operating profits from its assets over the years.
A decreasing operating ROA could suggest that the company's operating profits are not keeping pace with its asset base, which may raise concerns about the company's operational effectiveness. It is essential for the company to assess the reasons behind this decline in operating ROA and take appropriate measures to improve operational efficiency and profitability to ensure sustainable growth and value creation for stakeholders.
Peer comparison
Sep 30, 2023