Avnet Inc (AVT)
Operating return on assets (Operating ROA)
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 844,400 | 1,186,800 | 939,011 | 281,400 | -4,628 |
| Total assets | US$ in thousands | 12,209,100 | 12,477,200 | 10,388,500 | 8,925,400 | 8,105,200 |
| Operating ROA | 6.92% | 9.51% | 9.04% | 3.15% | -0.06% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $844,400K ÷ $12,209,100K
= 6.92%
The operating return on assets (Operating ROA) of Avnet Inc has fluctuated over the past five years. In the most recent fiscal year ending June 30, 2024, the company's operating ROA stands at 6.92%, marking a decrease from the previous year's value of 9.51%. Despite this decline, the operating ROA remains positive, indicating that the company generated a return from its operating activities relative to its total assets.
When compared to the fiscal year ending June 30, 2021, the operating ROA has shown significant improvement from 3.15% to 6.92%. This suggests that Avnet Inc has become more efficient in utilizing its assets to generate operating income.
Furthermore, the positive trend in operating ROA over the past few years demonstrates the company's ability to enhance profitability and operational efficiency. However, it is worth noting that the operating ROA was negative in the fiscal year ending June 30, 2020, indicating that the company struggled to generate operating income relative to its total assets during that period.
Overall, the analysis of Avnet Inc's operating ROA highlights the company's performance in generating operating income in relation to its asset base, with recent improvements indicating a positive trend in operational efficiency and profitability.
Peer comparison
Jun 30, 2024