American Woodmark Corporation (AMWD)
Return on assets (ROA)
| Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 116,216 | 93,723 | -29,722 | 61,193 | 83,688 |
| Total assets | US$ in thousands | 1,593,860 | 1,518,800 | 1,632,500 | 1,654,400 | 1,529,930 |
| ROA | 7.29% | 6.17% | -1.82% | 3.70% | 5.47% |
April 30, 2024 calculation
ROA = Net income ÷ Total assets
= $116,216K ÷ $1,593,860K
= 7.29%
American Woodmark Corporation's return on assets (ROA) has exhibited fluctuations over the past five years. In April 2024, the ROA stood at 7.29%, showing an improvement from the previous year's 6.17%. This indicates that the company generated $0.0729 in net income for every dollar of assets it possessed in the most recent fiscal year.
The significant turnaround in ROA from a negative 1.82% in April 2022 to 3.70% in April 2021 suggests that the company successfully recovered from a period of underperformance and managed to enhance its asset efficiency and profitability.
However, it is worth noting that the ROA in April 2024 has not yet surpassed the peak level observed in April 2019, which was 5.47%. This implies that there may still be room for improvement in utilizing the company's assets more effectively to generate higher returns.
Overall, American Woodmark Corporation's ROA performance reflects a mix of challenges and successes in asset management and operational efficiency over the past five years, with the recent uptick indicating positive momentum in generating returns from its asset base.