Liquidity Services Inc (LQDT)

Return on assets (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
Net income (ttm)	US$ in thousands	18,919	20,979	23,044	32,965	40,690	40,325	64,736	56,747	50,037	50,949	23,731	15,525	6,027	-3,683	-14,384	-19,246	-19,370	-19,196	-20,580	-19,636
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
ROA		6.80%	7.26%	8.14%	11.64%	15.12%	14.00%	22.89%	20.50%	17.44%	19.93%	9.95%	7.14%	2.94%	-1.87%	-7.23%	-10.57%	-10.81%	-10.25%	-10.79%	-10.17%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $18,919K ÷ $278,425K
= 6.80%

The return on assets (ROA) of Liquidity Services Inc has shown some fluctuations over the past eight quarters. The ROA has ranged from a low of 6.79% in Q1 2024 to a high of 22.89% in Q3 2022.

The declining trend in ROA from Q3 2022 to Q1 2024 may indicate decreasing profitability relative to the company's total assets during this period. The decrease in ROA could be attributed to lower net income or an increase in total assets without a corresponding increase in net income.

Overall, it is important for Liquidity Services Inc to monitor its ROA closely to ensure efficient utilization of assets and sustainable profitability in the long term.