QuinStreet Inc (QNST)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -28,065 | -20,816 | -4,718 | 13,926 | 6,205 |
| Total assets | US$ in thousands | 368,546 | 337,155 | 419,909 | 449,515 | 358,407 |
| Operating ROA | -7.62% | -6.17% | -1.12% | 3.10% | 1.73% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-28,065K ÷ $368,546K
= -7.62%
QuinStreet Inc's operating return on assets (operating ROA) has shown a declining trend over the past five years. The negative values for 2024 and 2023 indicate that the company is generating operating losses relative to its total assets. This could be a cause for concern as it indicates inefficiency in converting assets into operating profits.
Furthermore, the significant drop in operating ROA from 2021 to 2022 suggests a deterioration in the company's operational performance. Despite a slight improvement in 2023, the negative trend resumed in 2024 with a further decrease in the operating ROA.
Overall, QuinStreet Inc's operating ROA reflects a concerning pattern of declining profitability in relation to its asset base, highlighting potential challenges in optimizing operational efficiency and generating returns for shareholders.
Peer comparison
Jun 30, 2024