Amdocs Ordinary Shares(Dox) 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 DOX 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', DOX's return on assets was 10.6%, representing returns generated from total assets. Industry average for EDP Services in '2021' stood at -26.1%.
• In '2022', DOX's return on assets was 8.5%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for EDP Services in '2022' stood at -31.0%. Industry average declined by 4.9% from previous year.
• In '2023', DOX's return on assets was 8.4%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for EDP Services in '2023' stood at -26.6%. Industry average increased by 4.5% compared to previous year.
• In '2024', DOX's return on assets was 7.7%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for EDP Services in '2024' stood at -29.2%. Industry average declined by 2.7% from previous year.
Overall, DOX's return on assets has consistently declined during the past 4 years.

Formula: ROA = Net Income / Total Assets

Good Range: Commonly 5%-15%.