Strategic Education Inc (STRA)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	112,684	126,477	117,188	101,521	69,791	48,991	36,624	37,613	46,670	50,021	47,783	52,539	55,087	39,324	46,430	60,606	86,268	108,888	114,620	104,877
Total assets	US$ in thousands	2,049,740	2,187,520	2,177,520	2,155,240	2,125,210	2,114,100	2,142,110	2,165,770	2,161,750	2,215,250	2,260,260	2,367,880	2,305,880	2,316,120	2,363,310	2,369,440	2,295,810	2,047,320	1,791,560	1,783,820
ROA		5.50%	5.78%	5.38%	4.71%	3.28%	2.32%	1.71%	1.74%	2.16%	2.26%	2.11%	2.22%	2.39%	1.70%	1.96%	2.56%	3.76%	5.32%	6.40%	5.88%

December 31, 2024 calculation

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

Strategic Education Inc's Return on Assets (ROA) has displayed fluctuations over the reporting periods from March 31, 2020, to December 31, 2024. The ROA started at a relatively healthy 5.88% in March 2020, increased to 6.40% by June 2020, followed by a slight decrease to 5.32% by September 2020. However, the ROA experienced a more significant decline to 3.76% by December 2020, reflecting potential challenges in asset utilization and profitability.

Subsequently, the ROA continued to decline to 1.96% by June 2021, indicating ongoing difficulties in generating profits from the company's assets. The trend of decreasing ROA persisted until September 2021, where it reached 1.70%. However, there was a slight improvement in the ROA to 2.39% by December 2021, suggesting potential efforts to enhance asset efficiency.

The ROA fluctuated around the 2% mark over the next reporting periods, showing signs of stability but potentially indicating challenges in significantly increasing profitability from assets. Notably, there was a notable increase in ROA to 5.38% by June 30, 2024, followed by further improvements to 5.78% by September 30, 2024, and 5.50% by December 31, 2024, indicating enhanced profitability relative to the company's assets.

Overall, Strategic Education Inc's ROA has shown varying performance levels over the analyzed periods, with fluctuations possibly indicating changes in asset utilization efficiency and profitability. The company may need to focus on sustainable strategies to consistently improve ROA and maximize returns generated from its assets.