Bio-Techne Corp (TECH)

Return on assets (ROA)

Jun 30, 2025 Mar 31, 2025 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
Net income (ttm) US$ in thousands 73,400 131,666 158,137 150,712 168,105 203,001 224,160 246,700 285,262 271,302 261,823 291,991 272,051 225,487 210,530 176,631 140,411 184,298 174,948 248,296
Total assets US$ in thousands 2,557,870 2,644,260 2,670,420 2,736,020 2,813,190 2,721,170 2,730,750 2,755,360 2,638,690 2,599,700 2,363,400 2,350,720 2,294,800 2,299,890 2,304,850 2,270,190 2,262,960 2,084,640 2,067,870 2,053,100
ROA 2.87% 4.98% 5.92% 5.51% 5.98% 7.46% 8.21% 8.95% 10.81% 10.44% 11.08% 12.42% 11.86% 9.80% 9.13% 7.78% 6.20% 8.84% 8.46% 12.09%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $73,400K ÷ $2,557,870K
= 2.87%

The analysis of Bio-Techne Corp's return on assets (ROA) over the specified period reveals notable fluctuations and trends. Initially, the company's ROA was relatively high at 12.09% as of September 30, 2020. This indicates that the firm was effectively generating profits from its asset base during this period. However, subsequent quarters experienced a decline, reaching 8.46% by December 31, 2020, and further decreasing to 8.84% by March 31, 2021.

Throughout 2021 and into 2022, the ROA exhibited some variability but generally trended upward, peaking at 12.42% as of September 30, 2022. This suggests periods of improved efficiency in asset utilization and profitability, potentially attributable to favorable operational performance or strategic initiatives. The ROA stabilized somewhat during the latter part of 2022 and early 2023, maintaining levels around 10%, with a slight decline reaching 8.95% by September 30, 2023.

From late 2023 onwards, a consistent downward trend is evident. The ROA decreased from 8.21% at the end of December 2023 to 7.46% in March 2024, then to 5.98% by June 30, 2024, and further to 5.51% at the end of September 2024. The decline continued in 2025, with figures dropping to 4.98% in March 2025 and further to 2.87% by June 30, 2025.

Overall, the ROA demonstrates a pattern of initial strength, followed by a decline in recent periods. This could indicate reduced profitability relative to asset levels, possibly due to operational challenges, increased asset base without proportional earnings, or external market factors impacting asset efficiency. Continuous monitoring of these trends is warranted to assess whether the firm can reverse the declining ROA or implement strategies to improve asset utilization and profitability.