Spire Inc (SR)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	217,500	220,800	271,700	88,600	184,600
Total assets	US$ in thousands	10,313,600	10,083,700	9,356,400	8,241,200	7,619,200
ROA		2.11%	2.19%	2.90%	1.08%	2.42%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $217,500K ÷ $10,313,600K
= 2.11%

The return on assets (ROA) is a key financial ratio that measures a company's ability to generate earnings from its assets. It is calculated by dividing net income by average total assets. A higher ROA indicates that the company is more efficient in generating income from its assets.

Looking at the ROA trend for Spire Inc. from 2019 to 2023, we observe fluctuations in the ratio. In 2019, the ROA stood at 2.35%, indicating that the company generated $2.35 in net income for every $100 of assets. This was a relatively strong performance. However, in 2020, the ROA dropped to 0.89%, suggesting a significant decline in the company's ability to generate income from its assets. This could be attributed to various factors, such as a decrease in net income or an increase in average total assets.

In 2021, the ROA rebounded to 2.74%, indicating an improvement in the company's asset utilization and profitability. This could be the result of better management of assets and/or an increase in net income. The following year, in 2022, the ROA declined slightly to 2.04%, although it remained relatively strong compared to 2020.

In the most recent period, September 30, 2023, the ROA further decreased to 1.96%. This indicates a decline in the company's ability to generate income from its assets compared to the previous year.

Overall, the fluctuation in Spire Inc.'s ROA suggests varying levels of asset efficiency and profitability over the years. It would be important to further investigate the reasons behind these fluctuations and assess the company's strategies to improve its asset utilization and profitability in the future.