ePlus inc (PLUS)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 158,257 | 166,162 | 147,316 | 106,335 | 95,279 |
| Total assets | US$ in thousands | 1,653,470 | 1,414,830 | 1,166,200 | 1,076,780 | 909,113 |
| Operating ROA | 9.57% | 11.74% | 12.63% | 9.88% | 10.48% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $158,257K ÷ $1,653,470K
= 9.57%
Operating ROA measures how efficiently a company generates operating income from its total assets. ePlus inc's operating ROA has shown a decreasing trend over the past five years, declining from 10.48% in 2020 to 9.57% in 2024. This pattern suggests that the company may be experiencing challenges in effectively utilizing its assets to generate operating income. The relatively lower operating ROA in 2024 compared to previous years indicates a potential decrease in operational efficiency and profitability. It would be beneficial for ePlus inc to further analyze the factors contributing to this declining trend and implement strategies to improve asset utilization and operational performance.
Peer comparison
Mar 31, 2024