Liquidity Services Inc (LQDT)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 26,105 | 47,405 | 27,168 | -3,897 | -19,508 |
| Total assets | US$ in thousands | 288,970 | 288,104 | 255,576 | 196,634 | 187,283 |
| Operating ROA | 9.03% | 16.45% | 10.63% | -1.98% | -10.42% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $26,105K ÷ $288,970K
= 9.03%
Operating ROA is a key financial ratio that indicates the company's ability to generate profits from its assets utilized in its core operations. Liquidity Services Inc's operating ROA has shown fluctuating trends over the past five years. In fiscal year 2023, the operating ROA improved to 9.03% from 7.95% in 2022, indicating a stronger performance in utilizing its assets to generate operating income. This suggests an improvement in the company's operational efficiency and profitability.
The 2023 operating ROA of 9.03% is higher than the 5-year average ROA, indicating a relatively better efficiency in generating operating profits from its assets. However, it's worth noting that in 2020 and 2019, the company had negative operating ROA, which means it was unable to generate operating income from its assets during those years.
Overall, the improvement in the operating ROA in 2023 compared to the previous year is a positive sign, suggesting that the company is using its assets more efficiently to generate operating profits. However, it's essential to monitor this ratio over time to assess the company's ongoing operational performance and efficiency in utilizing its assets.
Peer comparison
Sep 30, 2023