Vestis Corporation (VSTS)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 157,951 | 188,605 | 216,762 | 221,134 | 217,909 | 184,058 | 175,265 | |||
| Total assets | US$ in thousands | 2,932,390 | 3,145,630 | 3,121,660 | 3,161,750 | 3,157,120 | 3,169,800 | 3,176,540 | — | 3,133,010 | — |
| Operating ROA | 5.39% | 6.00% | 6.94% | 6.99% | 6.90% | 5.81% | 5.52% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $157,951K ÷ $2,932,390K
= 5.39%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profit from its operating activities relative to its total assets. It is calculated as operating income divided by average total assets.
Analyzing Vestis Corporation's operating ROA over the past quarters, we can see fluctuations in the ratio. In the most recent quarter, ending September 30, 2024, the operating ROA was 5.39%, showing a decrease from the previous quarter's 6.00%. This decline indicates that the company's operating income generated from its assets decreased during the period.
Looking further back, we observe a gradual increase in the operating ROA from 5.52% in March 31, 2023, to a peak of 6.99% in December 31, 2023. This upward trend suggests that the company was able to improve its operational efficiency and profitability relative to its asset base during this period.
Overall, while there have been fluctuations in Vestis Corporation's operating ROA, it is important for the company to closely monitor and manage this ratio to ensure that it is effectively utilizing its assets to generate profits from its core operations. Additionally, comparing the operating ROA with industry benchmarks and the company's historical performance can provide further insights into its financial health and operational efficiency.
Peer comparison
Sep 30, 2024