Strategic Education Inc (STRA)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	112,684	69,791	46,670	55,087	86,268
Total assets	US$ in thousands	2,049,740	2,125,210	2,161,750	2,305,880	2,295,810
ROA		5.50%	3.28%	2.16%	2.39%	3.76%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $112,684K ÷ $2,049,740K
= 5.50%

Based on the provided data, Strategic Education Inc's return on assets (ROA) fluctuated over the years.

- As of December 31, 2020, the ROA was 3.76%, indicating that for every dollar of assets the company had, it generated a profit of 3.76 cents.
- By December 31, 2021, the ROA decreased to 2.39%, reflecting a decline in the company's profitability relative to its assets.
- The trend continued into December 31, 2022, with the ROA further dropping to 2.16%, suggesting potential inefficiencies in asset utilization.
- However, there was a notable improvement by December 31, 2023, with the ROA increasing to 3.28%, signaling a recovery in profitability.
- The most significant improvement was seen by December 31, 2024, where the ROA surged to 5.50%, indicating a strong performance in generating profits from its assets.

Overall, Strategic Education Inc's ROA experienced fluctuations, with a recent notable increase in profitability relative to assets, possibly reflecting improved efficiency or strategic initiatives. Further analysis would be needed to assess the underlying reasons for these fluctuations and to determine if the company's performance is sustainable.