Vista Outdoor Inc (VSTO)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 50,453 | 107,855 | 646,222 | 291,429 | -131,803 |
| Total assets | US$ in thousands | 2,402,380 | 2,798,880 | 2,396,200 | 1,764,940 | 1,394,880 |
| Operating ROA | 2.10% | 3.85% | 26.97% | 16.51% | -9.45% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $50,453K ÷ $2,402,380K
= 2.10%
Vista Outdoor Inc's operating return on assets (operating ROA) has fluctuated significantly over the past five years. The company experienced a decrease in operating ROA from 26.97% in 2022 to 16.51% in 2021. However, there was a sharp decline in 2020, where the operating ROA turned negative at -9.45%.
The operating ROA rebounded in 2023 to 3.85%, but then declined further to 2.10% in 2024. The decreasing trend in operating ROA indicates potential inefficiencies in the company's operations in generating profits relative to its asset base.
Vista Outdoor Inc should further analyze the factors contributing to the fluctuations in operating ROA to identify areas for improvement in operational efficiency and profitability. The company may need to focus on streamlining operations, reducing costs, or enhancing revenue generation strategies to improve its operating ROA in the future.
Peer comparison
Mar 31, 2024