Aecom Technology Corporation (ACM)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 324,134 | 646,804 | 629,553 | 381,461 | 396,096 |
| Total assets | US$ in thousands | 11,233,400 | 11,139,300 | 11,734,000 | 12,999,000 | 14,550,900 |
| Operating ROA | 2.89% | 5.81% | 5.37% | 2.93% | 2.72% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $324,134K ÷ $11,233,400K
= 2.89%
The operating return on assets (operating ROA) for AECOM has shown some variability over the past five years. In 2023, the operating ROA was 4.56%, down from 6.29% in 2022 and 5.48% in 2021, but higher than the 4.01% recorded in 2020. This indicates a recent decline in the company's ability to generate earnings from its assets. However, comparing the latest operating ROA with the 2019 figure of 4.60%, there has been minimal change over the longer term.
The decrease in operating ROA from 2022 to 2023 suggests that the company may be facing challenges in utilizing its assets to generate operating income. This could be a result of changes in the company's cost structure, asset base, or operating efficiency. Investors and stakeholders may want to closely monitor the company's strategies and performance to understand the drivers behind this decline in operating ROA.
Overall, while AECOM's operating ROA has fluctuated in the short term, the company's ability to generate operating income from its assets has remained relatively stable over the past five years. However, the recent decline in operating ROA warrants attention and further analysis to assess the company's operational efficiency and profitability.
Peer comparison
Sep 30, 2023