Vestis Corporation (VSTS)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 20,970 | 213,158 | 141,679 | 74,270 | 111,647 |
| Total assets | US$ in thousands | 2,932,390 | 3,157,120 | 3,133,010 | 3,108,380 | — |
| ROA | 0.72% | 6.75% | 4.52% | 2.39% | — |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $20,970K ÷ $2,932,390K
= 0.72%
The return on assets (ROA) for Vestis Corporation has exhibited fluctuations over the past four years, as shown in the table. In Sep 2020, the ROA figure is not available. However, from Sep 2021 to Sep 2024, the ROA has shown a general trend of improvement, starting at 2.39% in 2021 and reaching 0.72% by the end of Sep 2024.
The declining trend in the ROA from 6.75% in 2023 to 0.72% in 2024 suggests a potential decrease in the company's efficiency in generating profits from its assets. This could be indicative of lower profitability relative to the size of the asset base over the recent period. It may be worth investigating the reasons behind this decline and implementing strategies to improve the efficiency of asset utilization to enhance overall profitability in the future.
Overall, while the recent ROA of 0.72% indicates a lower return on assets compared to previous years, it is essential for Vestis Corporation to focus on optimizing asset management and operational efficiency to drive higher profitability levels in the upcoming periods.
Peer comparison
Sep 30, 2024