Upbound Group Inc. (UPBD)
Operating return on assets (Operating ROA)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 162,865 | 149,308 | 128,333 | 102,383 | 148,539 | 143,029 | 173,098 | 221,536 | 280,539 | 298,350 | 311,391 | 258,507 | 237,336 | 250,531 | 209,191 | 285,385 | 253,859 | 199,649 | 186,434 | 83,756 |
| Total assets | US$ in thousands | 2,721,430 | 2,626,080 | 2,585,920 | 2,741,120 | 2,763,620 | 2,768,600 | 2,767,130 | 2,777,120 | 2,993,330 | 3,053,670 | 3,035,300 | 3,006,960 | 1,750,980 | 1,667,560 | 1,576,630 | 1,607,060 | 1,582,800 | 1,497,930 | 1,744,210 | 1,681,420 |
| Operating ROA | 5.98% | 5.69% | 4.96% | 3.74% | 5.37% | 5.17% | 6.26% | 7.98% | 9.37% | 9.77% | 10.26% | 8.60% | 13.55% | 15.02% | 13.27% | 17.76% | 16.04% | 13.33% | 10.69% | 4.98% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $162,865K ÷ $2,721,430K
= 5.98%
The operating return on assets (operating ROA) for Upbound Group Inc. has shown fluctuations over the past few quarters. The operating ROA was 5.98% at the end of December 2023, slightly higher than the previous quarter's 5.69%. However, compared to the peak of 17.76% in March 2020, the current operating ROA indicates a decline in profitability.
The trend in operating ROA appears to have peaked in early 2020 and has since been on a downward trajectory. The peak in March 2020 was followed by a gradual decline, with fluctuations observed in subsequent quarters. The latest operating ROA of 5.98% signals a decrease in profitability compared to the levels seen in earlier years.
It is important for Upbound Group Inc. to investigate the factors contributing to the decrease in operating ROA and take necessary measures to improve profitability and efficiency in utilizing assets to generate operating income. Monitoring and analyzing the components impacting operating ROA can provide insights into operational performance and guide strategic decision-making to enhance overall financial health and sustainability.
Peer comparison
Dec 31, 2023