Liquidity Services Inc (LQDT)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,978 | 40,324 | 50,949 | -3,774 | -19,260 |
| Total assets | US$ in thousands | 288,970 | 288,104 | 255,576 | 196,634 | 187,283 |
| ROA | 7.26% | 14.00% | 19.93% | -1.92% | -10.28% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $20,978K ÷ $288,970K
= 7.26%
Liquidity Services Inc's return on assets (ROA) has exhibited fluctuating trends over the past five years. In 2023, the ROA stands at 7.26%, showing a decline from 14.00% in 2022 and 19.93% in 2021. The company experienced negative ROA in 2020, with a rate of -1.92%, and in 2019, with a rate of -10.28%. This indicates a substantial turnaround from negative to positive ROA in recent years.
The decreasing trend from 2019 to 2023 suggests a potential decline in the effectiveness of the company in generating profits relative to its asset base. It is important to further investigate the reasons behind the fluctuating ROA and monitor the company's financial performance closely to assess its ability to efficiently utilize its assets in generating earnings.
Peer comparison
Sep 30, 2023