Netsol Technologies(Ntwk) 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 NTWK 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', NTWK's return on assets was 2.1%, representing returns generated from total assets. Industry average for Computer Software: Prepackaged Software in '2021' stood at -25.5%.
• In '2022', NTWK's return on assets was -1.1%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2022' stood at -30.6%. Industry average declined by 5.0% from previous year.
• In '2023', NTWK's return on assets was -8.0%, representing returns generated from total assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2023' stood at -18.6%. Industry average increased by 12.0% compared to previous year.
• In '2024', NTWK's return on assets was 1.1%, representing returns generated from total assets. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2024' stood at -27.1%. Industry average declined by 8.5% from previous year.
Overall, NTWK'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%.