Advanced Drainage Systems Inc (WMS)
Return on assets (ROA)
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 450,172 | 509,915 | 507,086 | 271,331 | 224,230 |
| Total assets | US$ in thousands | 3,690,360 | 3,268,910 | 2,901,120 | 2,649,760 | 2,413,830 |
| ROA | 12.20% | 15.60% | 17.48% | 10.24% | 9.29% |
March 31, 2025 calculation
ROA = Net income ÷ Total assets
= $450,172K ÷ $3,690,360K
= 12.20%
The Return on Assets (ROA) of Advanced Drainage Systems Inc has shown a positive trend over the past five years, increasing from 9.29% as of March 31, 2021, to 12.20% as of March 31, 2025. This indicates that the company has been effectively utilizing its assets to generate profits for its shareholders. The peak ROA of 17.48% in March 31, 2023, suggests a particularly strong performance in that fiscal year.
Overall, the improvement in ROA reflects management's ability to efficiently generate earnings from the assets at its disposal. It is crucial for investors and stakeholders as it demonstrates the company's operational efficiency and profitability. However, it is essential to continue monitoring this ratio to ensure sustained performance and value creation for the company's stakeholders.