Nextracker Inc. Class A Common Stock (NXT)

Return on assets (ROA)

		Mar 31, 2025	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
Net income (ttm)	US$ in thousands	509,168	557,537	483,650	407,512	306,241	126,162	127,352	115,186	118,887	99,597	69,557	58,374	50,913	77,754	97,843	114,441	124,348
Total assets	US$ in thousands	3,192,520	2,983,560	2,768,660	2,626,930	2,518,780	2,095,120	2,033,560	1,656,870	1,419,680	1,259,700	1,287,760	1,129,500	1,017,290	1,017,290	944,915	976,958	880,969
ROA		15.95%	18.69%	17.47%	15.51%	12.16%	6.02%	6.26%	6.95%	8.37%	7.91%	5.40%	5.17%	5.00%	7.64%	10.35%	11.71%	14.11%

March 31, 2025 calculation

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

The return on assets (ROA) for Nextracker Inc. Class A Common Stock has been fluctuating over the period from March 31, 2021, to March 31, 2025. The ROA started at a healthy 14.11% in March 2021, indicating that the company was generating earnings relative to its assets. By June 2022, the ROA decreased to 5.17%, suggesting a decline in the company's ability to generate profits from its assets.

There was a noticeable improvement in the ROA in the subsequent quarters, with values increasing steadily from September 2022 onwards, reaching a peak of 18.69% by December 2024. This upward trend indicates an enhanced efficiency in asset utilization and profitability for Nextracker Inc. during this period.

However, there was a slight decrease in ROA to 15.95% by March 2025, which could be a normal fluctuation or might indicate potential challenges in maintaining the level of profitability seen in the previous quarter. Overall, the ROA trend reflects both positive and negative fluctuations in the company's ability to generate profits from its assets during the period under analysis.