Nextracker Inc. Class A Common Stock (NXT)

Operating return on assets (Operating ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Operating income	US$ in thousands	639,112	587,118	168,485	65,907	158,531
Total assets	US$ in thousands	3,192,520	2,518,780	1,419,680	1,017,290	880,969
Operating ROA		20.02%	23.31%	11.87%	6.48%	18.00%

March 31, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $639,112K ÷ $3,192,520K
= 20.02%

Nextracker Inc. Class A Common Stock's operating return on assets (operating ROA) has experienced fluctuations over the past five years based on the provided data. In March 31, 2021, the operating ROA stood at 18.00%, indicating a strong performance in utilizing its assets to generate operating profits. However, by March 31, 2022, the operating ROA decreased notably to 6.48%, potentially signaling challenges or changes in the company's asset management or profitability.

Subsequently, the operating ROA recovered to 11.87% by March 31, 2023, suggesting a recovery in the efficiency of asset utilization or improved profitability. The trend continued to improve significantly in the following year, with the operating ROA reaching 23.31% by March 31, 2024, showcasing a substantial increase in the company's ability to generate operating income from its assets.

In the most recent period ending March 31, 2025, the operating ROA slightly decreased to 20.02%, remaining at a relatively high level compared to the starting point. This indicates that Nextracker Inc. Class A Common Stock has maintained a strong performance in terms of operational efficiency and asset utilization, albeit with a slight decline compared to the previous year.

Overall, the fluctuation in Nextracker Inc.'s operating ROA over the years may reflect various internal and external factors impacting the company's operations, profitability, and efficiency in utilizing its assets. Further analysis and comparison with industry benchmarks may provide additional insights into the company's financial performance.