Leslies Inc (LESL)
Operating return on assets (Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 92,694 | 102,179 | 146,709 | 203,040 | 224,238 | 238,754 | 222,796 | 217,092 | 222,390 | 209,085 | |||
| Total assets | US$ in thousands | 998,520 | 1,034,440 | 1,137,420 | 1,163,230 | 1,076,780 | 1,109,630 | 1,116,990 | 930,195 | 811,265 | 1,042,230 | 996,112 | 857,315 | 745,840 |
| Operating ROA | 9.28% | 9.88% | 12.90% | 17.45% | 20.82% | 21.52% | 19.95% | 23.34% | 27.41% | 20.06% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $92,694K ÷ $998,520K
= 9.28%
Leslies Inc's operating return on assets (operating ROA) has fluctuated over the past four years, with a general decreasing trend observed more recently. The operating ROA stood at 9.28% as of December 31, 2023, down from 17.45% on March 31, 2023. This decline suggests a reduction in the efficiency with which the company is generating profits from its assets in the most recent period.
The highest operating ROA during the period was recorded on December 31, 2021, at 27.41%, indicating a strong performance in asset utilization and profitability at that time. However, the operating ROA has since declined, with the most recent figure of 9.28% indicating a significant decrease over the past two years.
The downward trend in operating ROA could be a cause for concern as it may signify efficiency or profitability issues within the company. Further analysis of the company's operating expenses, asset turnover, and revenue generation may be necessary to understand the reasons behind the declining operating ROA and to implement corrective measures if needed.
Peer comparison
Dec 31, 2023