ScanSource Inc (SCSC)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 90,324 | 135,886 | 122,167 | 61,483 | -64,967 |
| Total assets | US$ in thousands | 1,779,030 | 2,068,170 | 1,937,430 | 1,671,680 | 1,692,090 |
| Operating ROA | 5.08% | 6.57% | 6.31% | 3.68% | -3.84% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $90,324K ÷ $1,779,030K
= 5.08%
Operating Return on Assets (Operating ROA) measures how well a company generates operating profits from its assets. A higher Operating ROA indicates better operational efficiency and profitability.
Based on the data provided:
- ScanSource Inc's Operating ROA has fluctuated over the past five years.
- In Jun 30, 2024, the Operating ROA was 5.08%, down from 6.57% in Jun 30, 2023.
- Despite the decrease in 2024, the company still demonstrated improved performance compared to Jun 30, 2020 when the Operating ROA was negative at -3.84%.
- The peak Operating ROA of 6.57% was achieved in Jun 30, 2023.
- The trend shows that ScanSource Inc has been able to maintain positive Operating ROA levels in recent years, indicating a favorable ability to generate profits from its operations.
In summary, while the Operating ROA has shown some volatility, ScanSource Inc's ability to generate profits from its assets has generally improved over the past five years, with a positive trend overall. It will be important for the company to continue monitoring and managing its operating efficiency to sustain and potentially improve its profitability in the future.
Peer comparison
Jun 30, 2024