Simulations Plus Inc (SLP)
Operating return on assets (Operating ROA)
| Aug 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,131 | 8,725 | 14,911 | 11,253 | 11,605 |
| Total assets | US$ in thousands | 196,639 | 186,101 | 188,382 | 179,978 | 168,422 |
| Operating ROA | 3.12% | 4.69% | 7.92% | 6.25% | 6.89% |
August 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $6,131K ÷ $196,639K
= 3.12%
The operating return on assets (ROA) for Simulations Plus Inc has shown a general decrease over the five-year period from 2020 to 2024. The operating ROA was 6.89% in 2020 and has declined steadily to 3.12% in 2024. This trend indicates a decreasing efficiency in generating operating profit from the company's assets over the years.
The decline in operating ROA may be attributed to various factors such as increased operating costs, lower operating income, or a less effective utilization of assets. It suggests that the company may be experiencing challenges in maintaining or improving its profitability relative to its asset base.
It is important for Simulations Plus Inc to closely monitor its operating ROA and identify the underlying causes of the decline to implement strategies that can improve asset efficiency and profitability in the future.
Peer comparison
Aug 31, 2024