Sally Beauty Holdings Inc (SBH)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 282,733 | 325,029 | 337,640 | 418,443 | 258,760 |
| Total assets | US$ in thousands | 2,792,900 | 2,725,250 | 2,576,870 | 2,847,130 | 2,895,150 |
| Operating ROA | 10.12% | 11.93% | 13.10% | 14.70% | 8.94% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $282,733K ÷ $2,792,900K
= 10.12%
Sally Beauty Holdings Inc's operating return on assets (operating ROA) has shown a generally decreasing trend over the past five years. The company's operating ROA declined from 14.70% in 2021 to 10.12% in 2024. This decrease indicates a potential decline in the company's operating efficiency and/or profitability in utilizing its assets to generate operating income.
The operating ROA of Sally Beauty Holdings Inc fluctuated between 8.94% and 13.10% from 2020 to 2023, with a peak of 13.10% in 2022. However, the downward trend in operating ROA in the most recent year suggests that the company may be facing challenges in maintaining or improving its operating performance relative to its asset base.
This trend in operating ROA indicates the need for the company to focus on improving operational efficiency and effective asset utilization to enhance profitability and generate higher returns for its shareholders. Evaluating the factors contributing to the decline in operating ROA can help management make strategic decisions to potentially reverse this trend and improve overall financial performance.
Peer comparison
Sep 30, 2024