Vestis Corporation (VSTS)
Return on assets (ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 191,956 | 213,158 | -12,819 | 4,333 | |||
| Total assets | US$ in thousands | 3,161,750 | 3,157,120 | 3,169,800 | 3,176,540 | — | 3,133,010 | — |
| ROA | 6.07% | 6.75% | -0.40% | 0.14% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $191,956K ÷ $3,161,750K
= 6.07%
Over the past seven quarters, Vestis Corporation's return on assets (ROA) has fluctuated. The ROA was positive and relatively stable in the last three quarters of 2023, with values of 6.07%, 6.75%, and 0.14% in December, September, and March, respectively. This indicates that the company is generating income relative to its total assets during these periods.
However, in the second quarter of 2023, the ROA dropped significantly to -0.40%, suggesting that the company experienced a loss relative to its asset base during that period. This negative ROA could be a cause for concern, as it indicates that the company's assets were not effectively utilized to generate profits.
It is important for Vestis Corporation to closely monitor and analyze the factors contributing to these fluctuations in ROA. Improving asset management efficiency and profitability will be crucial for the company to maintain or enhance its financial performance in the future.
Peer comparison
Dec 31, 2023