Liquidity Services Inc (LQDT)

Return on assets (ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	19,991	20,978	40,324	50,949	-3,774
Total assets	US$ in thousands	346,888	288,970	288,104	255,576	196,634
ROA		5.76%	7.26%	14.00%	19.93%	-1.92%

September 30, 2024 calculation

ROA = Net income ÷ Total assets
= $19,991K ÷ $346,888K
= 5.76%

Liquidity Services Inc's return on assets (ROA) has shown fluctuating trends over the past five years. In 2024, the ROA decreased to 5.76% from 7.26% in 2023, indicating a decline in the company's ability to generate profits from its assets. This downward trend is notable compared to the significant drop in 2020 when the ROA was negative at -1.92%.

However, despite the recent decline, the company's ROA was relatively strong in previous years, with a peak of 19.93% in 2021 and 14.00% in 2022. This suggests that Liquidity Services Inc was previously more efficient in utilizing its assets to generate profits.

Overall, the fluctuations in Liquidity Services Inc's ROA indicate varying levels of asset efficiency and profitability over the years, with a notable decline in recent performance. Evaluation of the underlying factors affecting asset utilization and profitability may be necessary to understand the dynamics driving these changes and determine the company's future financial performance.