Leslies Inc (LESL)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | -23,379 | 27,242 | 159,029 | 126,634 |
| Total assets | US$ in thousands | 1,050,320 | 1,034,440 | 1,109,630 | 1,042,230 |
| ROA | -2.23% | 2.63% | 14.33% | 12.15% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-23,379K ÷ $1,050,320K
= -2.23%
Leslies Inc's return on assets (ROA) has exhibited fluctuations over the past four years. In Sep 2021, the ROA stood at a robust 12.15%, indicating that the company generated earnings relative to its total assets. Subsequently, in Sep 2022, Leslies Inc's ROA soared to an even higher level of 14.33%, demonstrating continued efficiency in utilizing its assets to generate profits.
However, in the subsequent years, the company experienced a decline in its ROA. In Sep 2023, the ROA dropped to 2.63%, signifying a reduction in the proportion of earnings generated per unit of assets. Notably, in Sep 2024, Leslies Inc recorded a negative ROA of -2.23%, indicating that the company incurred a net loss in relation to its total assets during that period.
The downward trend in ROA observed from Sep 2022 to Sep 2024 suggests potential challenges in asset utilization efficiency or profitability. It may be beneficial for Leslies Inc to assess its operational performance, cost management strategies, and overall financial health to improve its ROA and ensure sustainable profitability in the future.
Peer comparison
Sep 30, 2024