QuinStreet Inc (QNST)

Operating return on assets (Operating ROA)

		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	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	-28,065	-31,964	-28,041	-25,818	-20,816	-17,641	-15,172	-13,553	-4,718	2,426	7,620	14,942	13,927	8,165	5,922	7,447	6,205	10,473	5,535	7,095
Total assets	US$ in thousands	368,546	349,251	320,917	320,965	337,155	412,479	391,893	405,527	419,909	433,763	427,591	441,933	449,515	442,495	415,057	417,112	358,407	360,512	339,404	342,258
Operating ROA		-7.62%	-9.15%	-8.74%	-8.04%	-6.17%	-4.28%	-3.87%	-3.34%	-1.12%	0.56%	1.78%	3.38%	3.10%	1.85%	1.43%	1.79%	1.73%	2.91%	1.63%	2.07%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-28,065K ÷ $368,546K
= -7.62%

QuinStreet Inc's operating return on assets (operating ROA) has exhibited a downward trend over the past few quarters, indicating a decrease in the company's ability to generate profits from its assets. The negative operating ROA figures for the most recent quarters suggest that the company's operating income generated from its assets is insufficient to cover the asset base. This could be a cause for concern as it implies inefficiencies in asset utilization and profitability.

The negative operating ROA values from June 2023 to June 2024 indicate that QuinStreet Inc has been experiencing challenges in effectively utilizing its assets to generate operating income. Efforts may need to be taken to address operational inefficiencies and improve the company's overall asset utilization to enhance profitability. Additionally, the positive operating ROA figures observed in earlier periods show that the company has the capability to generate sustainable operating income from its assets when operating efficiently.

Overall, a sustained negative trend in operating ROA could potentially impact QuinStreet Inc's financial performance and long-term sustainability. It is crucial for the company to evaluate its operational processes, cost structures, and revenue generation strategies to reverse this downward trend in operating ROA and improve overall financial health.