Simulations Plus Inc (SLP)

Return on assets (ROA)

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Net income	US$ in thousands	9,961	12,483	9,782	9,332	8,583
Total assets	US$ in thousands	186,101	188,382	179,978	168,422	45,197
ROA		5.35%	6.63%	5.44%	5.54%	18.99%

August 31, 2023 calculation

ROA = Net income ÷ Total assets
= $9,961K ÷ $186,101K
= 5.35%

To analyze Simulations Plus Inc.'s return on assets (ROA) over the past five years, we can see a declining trend from 2019 to 2023. The ROA decreased from 18.99% in 2019 to 5.35% in 2023. This downward trend could indicate a decrease in the company's ability to generate earnings from its assets. It is important to consider the reasons behind this decline, such as changes in the company's asset base, profitability, or overall economic conditions. Further investigation into the company's financial performance and operational efficiency is necessary to determine the factors contributing to this trend.