Liquidity Services Inc (LQDT)

Return on assets (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
Net income (ttm)	US$ in thousands	19,991	19,896	20,383	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
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
ROA		5.76%	6.11%	6.71%	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%

September 30, 2024 calculation

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

The Return on Assets (ROA) of Liquidity Services Inc has shown fluctuating trends over the past several quarters. The ROA ranged from -10.81% in December 2019 to a peak of 22.89% in June 2022. In the most recent quarter, September 2024, the ROA stands at 5.76%.

The ROA indicates the company's ability to generate profit from its assets, with a higher percentage reflecting better asset utilization. The downward trend in ROA from 22.89% in June 2022 to 5.76% in September 2024 suggests a decrease in profitability relative to assets employed.

It is essential for Liquidity Services Inc to closely monitor and analyze the factors influencing this decline in ROA, such as changes in revenue, cost management, asset efficiency, or overall market conditions. By addressing these factors, the company may strive to improve its ROA and enhance its overall financial performance.