Simulations Plus Inc (SLP)

Operating return on assets (Operating ROA)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Operating income (ttm)	US$ in thousands	9,215	8,807	8,725	9,703	10,552	11,998	14,911	14,391	13,987	11,993	11,253	13,282	12,597	11,937	11,604	11,350	11,375	11,279	10,648	10,598
Total assets	US$ in thousands	193,973	185,778	186,101	179,134	173,201	190,461	188,382	186,223	185,044	180,994	179,978	179,083	175,769	170,470	168,422	35,885	49,200	47,763	45,197	45,502
Operating ROA		4.75%	4.74%	4.69%	5.42%	6.09%	6.30%	7.92%	7.73%	7.56%	6.63%	6.25%	7.42%	7.17%	7.00%	6.89%	31.63%	23.12%	23.61%	23.56%	23.29%

February 29, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $9,215K ÷ $193,973K
= 4.75%

Simulations Plus Inc's operating return on assets (ROA) has displayed some fluctuations over the past few quarters. The operating ROA ranged from 4.69% to as high as 31.63% during the period reviewed. The downward trend observed from 7.92% in August 2022 to 4.69% in August 2023 raised concerns. However, the subsequent increase to 5.42% in November 2023 indicated a potential recovery.

The high operating ROA of 31.63% in February 2020 was likely an outlier, possibly due to specific events or accounting adjustments in that period. It is important to consider other financial metrics and factors to gain a comprehensive understanding of Simulations Plus Inc's performance and financial health.

Overall, while the fluctuations in operating ROA provide insights into the company's efficiency in generating profits from its assets, a more in-depth analysis incorporating additional financial indicators is necessary to evaluate Simulations Plus Inc's overall operational performance.