Sally Beauty Holdings Inc (SBH)
Operating return on assets (Operating ROA)
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 307,564 | 325,029 | 287,317 | 296,395 | 311,448 | 337,640 | 409,637 | 437,851 | 426,901 | 418,443 | 426,927 | 300,941 | 268,695 | 258,760 | 255,175 | 373,875 | 443,122 | 458,473 | 445,507 | 427,604 |
| Total assets | US$ in thousands | 2,731,390 | 2,725,250 | 2,675,400 | 2,675,110 | 2,668,550 | 2,576,870 | 2,685,870 | 2,743,000 | 2,855,940 | 2,847,130 | 2,778,180 | 2,909,570 | 2,999,650 | 2,895,150 | 3,198,090 | 2,921,170 | 2,675,060 | 2,098,450 | 2,072,270 | 2,092,610 |
| Operating ROA | 11.26% | 11.93% | 10.74% | 11.08% | 11.67% | 13.10% | 15.25% | 15.96% | 14.95% | 14.70% | 15.37% | 10.34% | 8.96% | 8.94% | 7.98% | 12.80% | 16.56% | 21.85% | 21.50% | 20.43% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $307,564K ÷ $2,731,390K
= 11.26%
Operating return on assets (ROA) is a key financial ratio that indicates how efficiently a company generates operating profit from its assets. Analyzing the trend of Sally Beauty Holdings Inc's operating ROA from Q2 2022 to Q1 2024 reveals a gradual decline over the period.
Starting at a robust 16.14% in Q2 2022, the operating ROA exhibited a consistently downward trend, reaching 11.51% by Q1 2024. This decline suggests that the company may be facing challenges in effectively utilizing its assets to generate operating income.
The decreasing trend in operating ROA could indicate potential inefficiencies in the company's operations or challenges in optimizing asset performance. It may also reflect deteriorating profitability relative to the size of Sally Beauty Holdings Inc's asset base.
Overall, the declining trend in Sally Beauty Holdings Inc's operating ROA highlights the importance of closely monitoring and assessing the company's asset utilization and operational efficiency to enhance profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2023