Manhattan Associates Inc (MANH)

Operating return on assets (Operating ROA)

Dec 31, 2024 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
Operating income (ttm) US$ in thousands 261,596 259,773 238,131 220,426 209,881 195,721 179,043 165,813 152,700 135,138 140,776 142,880 134,333 135,387 127,955 115,290 114,061 110,933 110,954 111,844
Total assets US$ in thousands 757,551 698,140 665,312 674,762 673,353 572,995 526,994 530,843 570,178 514,719 514,289 511,754 539,708 514,283 474,997 458,528 465,412 416,981 380,389 348,044
Operating ROA 34.53% 37.21% 35.79% 32.67% 31.17% 34.16% 33.97% 31.24% 26.78% 26.25% 27.37% 27.92% 24.89% 26.33% 26.94% 25.14% 24.51% 26.60% 29.17% 32.14%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $261,596K ÷ $757,551K
= 34.53%

Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate operating income from its assets. Manhattan Associates Inc's operating ROA over the period displayed a decreasing trend from March 31, 2020, to December 31, 2021. The ratio started at a high of 32.14% in March 2020 and gradually declined to 24.89% by December 31, 2021. This indicates that the company's ability to generate operating income from its assets was decreasing during this period.

However, from March 31, 2022, to December 31, 2024, Manhattan Associates Inc's operating ROA exhibited an improving trend. The ratio increased from 27.92% in March 2022 to 34.53% by December 31, 2024. This suggests that the company's efficiency in generating operating income from its assets improved significantly during this period.

Overall, Manhattan Associates Inc's operating ROA showed a mixed performance, with a declining trend in the earlier period followed by a notable recovery in the later period. It is essential for investors and analysts to closely monitor this ratio to assess the company's operational efficiency and profitability in utilizing its assets effectively.