REX American Resources Corporation (REX)

Return on assets (ROA)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020
Net income (ttm)	US$ in thousands	58,167	67,637	69,213	65,890	60,935	48,528	25,636	27,751	27,697	40,962	53,056	49,762	52,364	34,481	28,044	18,420	3,001	3,860	-7,033	-3,029
Total assets	US$ in thousands	720,008	715,662	680,009	671,019	664,802	627,564	592,936	566,541	579,579	575,039	559,870	548,041	550,361	524,402	505,507	486,140	479,345	475,161	472,338	476,038
ROA		8.08%	9.45%	10.18%	9.82%	9.17%	7.73%	4.32%	4.90%	4.78%	7.12%	9.48%	9.08%	9.51%	6.58%	5.55%	3.79%	0.63%	0.81%	-1.49%	-0.64%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $58,167K ÷ $720,008K
= 8.08%

ROA (Return on Assets) measures a company's efficiency in generating profits from its assets. Looking at the data provided for REX American Resources Corporation, we see fluctuations in ROA over time. The ROA started at negative values in April 2020 and July 2020, indicating that the company was not efficient in generating profits relative to its assets during that period.

However, there was a significant improvement in ROA from October 2020 onwards, with positive values indicating an increase in profitability relative to the assets employed. The trend continued to improve, reaching a peak of 10.18% in July 2024.

The consistent improvement in ROA over the years suggests that REX American Resources Corporation has been effectively utilizing its assets to generate profits. However, the slight decline in ROA to 8.08% in January 2025 may indicate a need for the company to focus on maintaining or enhancing its asset efficiency to sustain profitability levels.

Overall, the trend of increasing ROA reflects positively on the company's management of its assets and its ability to generate returns for shareholders.