Sally Beauty Holdings Inc (SBH)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 325,029 | 337,640 | 418,443 | 258,760 | 458,473 |
| Total assets | US$ in thousands | 2,725,250 | 2,576,870 | 2,847,130 | 2,895,150 | 2,098,450 |
| Operating ROA | 11.93% | 13.10% | 14.70% | 8.94% | 21.85% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $325,029K ÷ $2,725,250K
= 11.93%
Sally Beauty Holdings Inc's operating return on assets (operating ROA) is a key measure of the company's profitability in relation to its total assets. The downward trend in operating ROA from 2019 to 2023 is notable. In 2019, the operating ROA was at a high of 21.82%, indicating that the company generated $21.82 in operating income for every $100 of assets. However, this declined to 12.56% by September 2023. This downward trend suggests that the company's ability to generate operating income from its assets has weakened over the years, potentially signaling operational challenges or changes in business strategy. It is important for stakeholders to understand the underlying factors contributing to this trend and monitor the company's performance closely.
Peer comparison
Sep 30, 2023