Vestis Corporation (VSTS)
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 | ||
|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 221,134 | 217,909 | 184,058 | 175,265 | |||
| Total assets | US$ in thousands | 3,161,750 | 3,157,120 | 3,169,800 | 3,176,540 | — | 3,133,010 | — |
| Operating ROA | 6.99% | 6.90% | 5.81% | 5.52% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $221,134K ÷ $3,161,750K
= 6.99%
To analyze Vestis Corporation's operating return on assets (operating ROA) based on the data provided, we observe a consistent trend of improvement over the past four quarters. The operating ROA has increased from 5.52% in March 2023 to 6.99% in December 2023, indicating an upward trajectory in the company's operational efficiency in generating profits from its assets.
This positive trend suggests that Vestis Corporation has been effectively utilizing its assets to generate operating income. A higher operating ROA reflects the company's ability to generate earnings from its core business operations relative to its total assets.
The steady increase in operating ROA demonstrates that Vestis Corporation has been managing its assets efficiently and improving its operational performance over the observed period. This improvement may be attributed to better cost management, increased revenue generation, or other operational enhancements within the company.
Overall, the consistent improvement in Vestis Corporation's operating ROA indicates positive operational performance and efficient asset utilization, which is a favorable sign for the company's financial health and potentially a positive indicator for investors and stakeholders.
Peer comparison
Dec 31, 2023