Acuity Brands Inc (AYI)
Operating return on assets (Operating ROA)
| Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | Aug 31, 2020 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 473,400 | 509,700 | 427,600 | 353,900 | 462,900 |
| Total assets | US$ in thousands | 3,408,500 | 3,480,200 | 3,575,100 | 3,491,700 | 3,172,400 |
| Operating ROA | 13.89% | 14.65% | 11.96% | 10.14% | 14.59% |
August 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $473,400K ÷ $3,408,500K
= 13.89%
Acuity Brands, Inc.'s operating return on assets (operating ROA) indicates the efficiency of the company in generating operating income from its total assets. The trend of Acuity Brands' operating ROA from 2019 to 2023 reflects the company's ability to utilize its assets to generate operating profits.
From 2019 to 2020, Acuity Brands experienced a slight decrease in operating ROA, dropping from 14.65% to 10.71%. This decrease may signal a less efficient use of assets to generate operating income during this period. However, this was followed by a significant improvement in 2021, with operating ROA increasing to 12.05%.
The most notable improvement in operating ROA occurred from 2021 to 2022, with the ratio rising to 14.65%, which brought it back to the level observed in 2019. This indicates that Acuity Brands effectively increased the operating income generated from its assets, potentially through improved operational efficiency or cost management.
In 2023, Acuity Brands' operating ROA continued to show a positive trend, reaching 14.68%. This suggests that the company has sustained and potentially further improved its ability to generate operating income relative to its asset base.
Overall, the trend in operating ROA for Acuity Brands, Inc. highlights the company's ability to efficiently utilize its assets to generate operating income, with a noteworthy improvement in recent years. However, it would be important to analyze the company's financial statements in conjunction with other performance metrics to gain a comprehensive understanding of its financial health and operational efficiency.
Peer comparison
Aug 31, 2023