Liquidity Services Inc (LQDT)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Operating income (ttm)	US$ in thousands	23,403	24,016	24,376	23,027	26,107	29,473	39,913	47,650	47,406	44,471	34,370	27,025	27,168	24,205	15,809	5,719	-3,897	-14,631	-19,390	-19,423
Total assets	US$ in thousands	346,888	325,538	303,651	278,425	288,970	283,027	283,097	269,201	288,104	282,810	276,819	286,878	255,576	238,403	217,583	205,254	196,634	198,864	182,072	179,196
Operating ROA		6.75%	7.38%	8.03%	8.27%	9.03%	10.41%	14.10%	17.70%	16.45%	15.72%	12.42%	9.42%	10.63%	10.15%	7.27%	2.79%	-1.98%	-7.36%	-10.65%	-10.84%

September 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $23,403K ÷ $346,888K
= 6.75%

Operating return on assets (operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its assets used in operations. Liquidity Services Inc's operating ROA has shown fluctuations over the past few quarters.

The trend indicates that the company's operating efficiency has improved from negative values in the previous years to positive values in recent quarters. The operating ROA showed a significant increase from -10.84% in the fourth quarter of 2019 to 8.03% in the first quarter of 2024. This upward trajectory continued until the third quarter of 2024, with the operating ROA reaching 6.75%.

The improvement in operating ROA suggests that Liquidity Services Inc has been able to generate more operating income relative to its assets. However, the company should continue to monitor and maintain this trend to ensure sustainable profitability and operational effectiveness.

Overall, the positive trend in operating ROA indicates that Liquidity Services Inc has been able to enhance its operational efficiency and profitability in recent quarters. Continued focus on optimizing asset utilization and profitability will be crucial for the company's long-term financial performance.