Source Capital Cmn Shs Of Bi(Sor) 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 SOR 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', SOR's return on assets was 10.7%, representing returns generated from total assets. Industry average for Investment Managers in '2021' stood at 11.8%.
• In '2022', SOR's return on assets was -7.5%, representing returns generated from total assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Investment Managers in '2022' stood at -4.7%. Industry average declined by 16.4% from previous year.
• In '2023', SOR's return on assets was 15.3%, representing returns generated from total assets. The increase since '2022' reflects strengthening financial performance. Industry average for Investment Managers in '2023' stood at 1.1%. Industry average increased by 5.8% compared to previous year.
• In '2024', SOR's return on assets was 10.5%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Investment Managers in '2024' stood at 8.9%. Industry average increased by 7.7% compared to previous year.
Overall, SOR'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%.