Sally Beauty Holdings Inc (SBH)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 153,414 | 184,600 | 183,553 | 239,858 | 184,600 |
| Total assets | US$ in thousands | 2,792,900 | 2,725,250 | 2,576,870 | 2,847,130 | 2,895,150 |
| ROA | 5.49% | 6.77% | 7.12% | 8.42% | 6.38% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $153,414K ÷ $2,792,900K
= 5.49%
Sally Beauty Holdings Inc's return on assets (ROA) has shown a downward trend over the past five years, with values of 5.49% in 2024, 6.77% in 2023, 7.12% in 2022, 8.42% in 2021, and 6.38% in 2020. This indicates a decrease in the company's ability to generate profits from its assets over the period. A declining ROA could be a result of various factors, such as increased asset base without a proportionate increase in earnings, inefficiencies in asset utilization, or declining profitability. Further analysis is needed to understand the specific reasons behind the decline in ROA and to determine appropriate strategic actions to improve the company's asset efficiency and profitability.
Peer comparison
Sep 30, 2024