Advanced Drainage Systems Inc (WMS)
Return on assets (ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 509,915 | 507,086 | 271,331 | 224,230 | -193,174 |
| Total assets | US$ in thousands | 3,268,910 | 2,901,120 | 2,649,760 | 2,413,830 | 2,369,890 |
| ROA | 15.60% | 17.48% | 10.24% | 9.29% | -8.15% |
March 31, 2024 calculation
ROA = Net income ÷ Total assets
= $509,915K ÷ $3,268,910K
= 15.60%
The return on assets (ROA) for Advanced Drainage Systems Inc has been fluctuating over the past five years.
The ROA increased from 2020 to 2021, turning from a negative figure of -8.15% to a positive 9.29%. This represented a significant improvement in the company's ability to generate earnings relative to its asset base.
Between 2021 and 2022, the ROA continued to rise to 10.24%, indicating further efficiency in the utilization of the company's assets to generate profits.
In 2023, the ROA peaked at 17.48%, reflecting a substantial increase in profitability in comparison to the preceding years. This suggests that the company improved its operational efficiency and profitability during this period.
However, in the most recent period ending March 31, 2024, the ROA decreased to 15.60%. While still relatively high, this decline may indicate a slight reduction in the company's efficiency in generating profits from its assets compared to the previous year.
Overall, Advanced Drainage Systems Inc has shown a positive trend in its ROA over the past five years, with occasional fluctuations. This indicates the company's ability to effectively utilize its assets to generate profits, although ongoing monitoring of this metric is advisable to ensure sustained performance.