Natural Grocers By Vitamin Cottage(Ngvc) 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 NGVC 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', NGVC's return on assets was 3.1%, representing returns generated from total assets. Industry average for Food Chains in '2021' stood at 0.8%.
• In '2022', NGVC's return on assets was 3.2%, representing returns generated from total assets. The increase since '2021' reflects strengthening financial performance. Industry average for Food Chains in '2022' stood at 1.8%. Industry average increased by 1.0% compared to previous year.
• In '2023', NGVC's return on assets was 3.5%, representing returns generated from total assets. The increase since '2022' reflects strengthening financial performance. Industry average for Food Chains in '2023' stood at 1.0%. Industry average declined by 0.8% from previous year.
• In '2024', NGVC's return on assets was 5.1%, representing returns generated from total assets. The increase since '2023' reflects strengthening financial performance. Industry average for Food Chains in '2024' stood at 1.7%. Industry average increased by 0.7% compared to previous year.
Overall, NGVC's return on assets has been volatile but generally stable over the past 4 years.
Formula: ROA = Net Income / Total Assets
Good Range: Commonly 5%-15%.