Nextracker Inc. Class A Common Stock (NXT)

Return on assets (ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	509,168	306,241	1,143	50,913	124,348
Total assets	US$ in thousands	3,192,520	2,518,780	1,419,680	1,017,290	880,969
ROA		15.95%	12.16%	0.08%	5.00%	14.11%

March 31, 2025 calculation

ROA = Net income ÷ Total assets
= $509,168K ÷ $3,192,520K
= 15.95%

Based on the provided ROA data for Nextracker Inc. Class A Common Stock, we observe fluctuations in the return on assets over the period from March 31, 2021, to March 31, 2025.

In March 2021, the ROA stood at a healthy 14.11%, indicating that the company was efficiently utilizing its assets to generate profits. However, by March 2022, the ROA dropped to 5.00%, signaling a decline in the company's ability to generate earnings relative to its asset base.

The trend continued as of March 31, 2023, with an ROA of only 0.08%, indicating a significant decrease in profitability compared to the previous years. This could raise concerns about the company's asset management and overall operational efficiency.

By March 31, 2024, there was a notable recovery in ROA, which increased to 12.16%, suggesting that the company had made improvements in leveraging its assets to generate returns. Furthermore, the most recent data point as of March 31, 2025, shows a robust ROA of 15.95%, signifying a strong performance in utilizing assets effectively to drive profitability.

In conclusion, while there have been fluctuations in Nextracker Inc.'s ROA over the period under review, the recent uptrend indicates a positive momentum in the company's ability to generate earnings relative to its asset base. Monitoring future ROA trends will be crucial to assess the company's continued efficiency in asset utilization.