Sonos Inc (SONO)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -38,146 | -10,274 | 67,383 | 158,595 | -20,115 |
| Total assets | US$ in thousands | 916,312 | 1,002,240 | 1,188,390 | 1,138,800 | 816,051 |
| ROA | -4.16% | -1.03% | 5.67% | 13.93% | -2.46% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-38,146K ÷ $916,312K
= -4.16%
Sonos Inc's return on assets (ROA) has exhibited variability over the past five years. The company saw a significant decline in ROA from 13.93% in September 2021 to -4.16% in September 2024, indicating a substantial deterioration in profitability in recent periods. This negative ROA suggests that Sonos Inc's assets may not be generating sufficient returns to cover operating expenses and interest payments.
The downward trend in ROA is concerning as it indicates decreasing efficiency in managing the company's assets to generate profits. Investors and stakeholders may view this as a signal of weakening financial performance and a potential inefficiency in asset utilization. It is essential for Sonos Inc to analyze the underlying factors contributing to the decline in ROA and take measures to improve asset profitability and operational efficiency in order to enhance overall financial performance.
Peer comparison
Sep 30, 2024