Liquidity Services Inc (LQDT)

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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	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	-19,508	-20,412	-19,075
Total assets	US$ in thousands	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	187,283	190,668	193,109
Operating ROA		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%	-10.42%	-10.71%	-9.88%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $23,027K ÷ $278,425K
= 8.27%

To analyze Liquidity Services Inc's operating return on assets (operating ROA) based on the provided data, we can observe a fluctuating trend over the past eight quarters. The operating ROA has ranged from a low of 7.95% in Q4 2022 to a high of 9.87% in Q2 2022.

The trend indicates some variability in the company's efficiency in generating profits from its assets over the given time period. The average operating ROA during this period is 8.84%. This signifies that, on average, the company is generating approximately $0.0884 of operating income for every dollar of assets deployed in its operations.

It's worth noting that a higher operating ROA generally suggests that the company is utilizing its assets efficiently to generate operating income. On the other hand, a lower operating ROA could indicate room for improvement in asset management and operational efficiency.

Overall, while Liquidity Services Inc's operating ROA has shown some fluctuations, it is crucial for stakeholders to monitor this ratio continuously to assess the company's operational performance and asset utilization efficiency. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's operational effectiveness.