Vestis Corporation (VSTS)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | 217,909 | 192,243 | 96,239 | 149,720 |
| Total assets | US$ in thousands | 3,157,120 | 3,133,010 | 3,108,380 | — |
| Operating ROA | 6.90% | 6.14% | 3.10% | — |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $217,909K ÷ $3,157,120K
= 6.90%
Operating ROA is a key financial metric that measures a company's ability to generate operating income from its assets. The trend analysis of Vestis Corporation's operating ROA from 2020 to 2023 shows a positive trajectory.
In 2020, the operating ROA was not available, but by 2021, the operating ROA had increased to 3.10%. This growth continued into 2022, with the operating ROA rising further to 6.14%. By the most recent period ending Sep 30, 2023, Vestis Corporation's operating ROA had reached 6.90%, indicating a steady improvement in the company's operational efficiency and profitability relative to its asset base.
The consistent increase in operating ROA over the three-year period suggests that Vestis Corporation has been effectively utilizing its assets to generate operating income. This indicates strong management efficiency and the company's ability to translate its assets into profitability. Investors and stakeholders may view this trend positively as it demonstrates a healthy financial performance and potentially attractive returns on investments made in the company.
Peer comparison
Sep 30, 2023