Simulations Plus Inc (SLP)

Return on assets (ROA)

		Aug 31, 2024	May 31, 2024	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
Net income (ttm)	US$ in thousands	9,954	9,645	10,516	10,661	9,961	10,388	10,467	10,702	12,483	11,827	11,527	10,329	9,782	11,665	10,814	9,753	9,332	9,203	9,156	9,105
Total assets	US$ in thousands	196,639	192,691	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
ROA		5.06%	5.01%	5.42%	5.74%	5.35%	5.80%	6.04%	5.62%	6.63%	6.35%	6.23%	5.71%	5.44%	6.51%	6.15%	5.72%	5.54%	25.65%	18.61%	19.06%

August 31, 2024 calculation

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

Simulations Plus Inc's return on assets (ROA) has shown fluctuations over the past several quarters. The ROA ranged between 5.01% and 6.63% from Nov 30, 2019, to Aug 31, 2023, indicating relatively stable performance during this period. However, there was a significant increase in ROA to 25.65% in the quarter ending Aug 31, 2020, followed by a decrease in the subsequent quarters.

The sudden spike in ROA in Aug 31, 2020, could be an outlier or attributed to specific events within that period. It's important to investigate the reasons behind such abnormal performance. Overall, the company's ROA trend suggests a generally consistent level of efficiency in generating profit from its assets, albeit with some variations. Monitoring future ROA trends will be crucial to assess the company's ongoing financial performance and operational efficiency.