Simulations Plus Inc (SLP)

Return on assets (ROA)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Net income	US$ in thousands	9,954	9,961	12,483	9,782	9,332
Total assets	US$ in thousands	196,639	186,101	188,382	179,978	168,422
ROA		5.06%	5.35%	6.63%	5.44%	5.54%

August 31, 2024 calculation

ROA = Net income ÷ Total assets
= $9,954K ÷ $196,639K
= 5.06%

Simulations Plus Inc's return on assets (ROA) has shown some fluctuation over the past five years. ROA decreased from 6.63% in 2022 to 5.44% in 2021, before rebounding slightly to 5.54% in 2020. However, there was a further decline to 5.35% in 2023 before a slight increase to 5.06% in 2024. Overall, the company's ROA has been relatively stable within the range of 5-6.6% over the period under consideration. This indicates that, on average, the company generates approximately 5-6.6% in profit for every dollar of assets it owns, demonstrating reasonable efficiency in asset utilization and profitability. It is important for Simulations Plus Inc to continue monitoring and managing its asset utilization to maintain or improve its ROA in the future.