Bright Scholar Education(Bedu) Financials: Return On Assets Compared To Industry Average, Plus Other Key Ratios

Profitability Trend (Last 5 Years)

Profitability - return on assets

This chart shows the historical trend of return on assets for BEDU compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Return on Assets (ROA)

Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.

Interpretation:
• In '2021', BEDU's return on assets was -0.6%, representing returns generated from total assets. Industry average for Other Consumer Services in '2021' stood at -6.5%.
• In '2022', BEDU's return on assets was -11.2%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2022' stood at -12.4%. Industry average declined by 5.9% from previous year.
• In '2023', BEDU's return on assets was -7.7%, representing returns generated from total assets. The increase since '2022' reflects strengthening financial performance. Industry average for Other Consumer Services in '2023' stood at -11.7%. Industry average increased by 0.7% compared to previous year.
• In '2024', BEDU's return on assets was -25.9%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2024' stood at -9.9%. Industry average increased by 1.7% compared to previous year.
Overall, BEDU's return on assets has been volatile but showed a downward trend over the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.