American Woodmark Corporation (AMWD)
Operating return on assets (Operating ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 140,239 | 161,394 | 136,352 | -60,740 | 114,738 |
| Total assets | US$ in thousands | 1,570,570 | 1,593,860 | 1,518,800 | 1,632,500 | 1,636,510 |
| Operating ROA | 8.93% | 10.13% | 8.98% | -3.72% | 7.01% |
April 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $140,239K ÷ $1,570,570K
= 8.93%
The operating return on assets (operating ROA) of American Woodmark Corporation has exhibited notable fluctuations over the observed period from April 30, 2021, through April 30, 2025.
In the fiscal year ending April 30, 2021, the operating ROA stood at 7.01%, indicating a modest level of efficiency in generating operating income relative to the company's total assets. However, in the subsequent year ending April 30, 2022, the operating ROA experienced a significant decline, reaching -3.72%, which reflects a shift to an operating loss on assets, suggesting challenges in operational efficiency or adverse market conditions that impacted profitability.
By the fiscal year ending April 30, 2023, the company's operating ROA showed a substantial recovery to 8.98%, surpassing the 2021 level and indicating a strong resurgence in operational profitability relative to total assets. This upward trend continued into the fiscal year ending April 30, 2024, with the operating ROA further increasing to 10.13%, marking the highest point within this period and signaling improved asset efficiency and operational performance.
In the most recent fiscal year ending April 30, 2025, the operating ROA slightly declined to 8.93%, yet remained well above the levels observed in 2021 and 2022, demonstrating sustained operational strength although slightly tempered from its peak in 2024.
Overall, the data depict a period of significant volatility with a downturn in 2022 but a strong subsequent recovery and stabilization in operating efficiency through 2024 and into 2025. This trajectory suggests that American Woodmark has been able to recover from prior challenges, achieving higher operational metrics relative to its assets, which could be indicative of improved management strategies, market conditions, or operational efficiencies during this time frame.