Cal-Maine Foods Inc (CALM)
Operating return on assets (Operating ROA)
| Jun 1, 2024 | Jun 3, 2023 | May 28, 2022 | May 29, 2021 | May 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 312,452 | 967,726 | 143,537 | -26,264 | 1,269 |
| Total assets | US$ in thousands | 2,184,760 | 1,954,520 | 1,427,490 | 1,229,170 | 1,206,690 |
| Operating ROA | 14.30% | 49.51% | 10.06% | -2.14% | 0.11% |
June 1, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $312,452K ÷ $2,184,760K
= 14.30%
Cal-Maine Foods Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In Jun 1, 2024, the operating ROA stood at 14.30%, indicating that the company generated 14.30 cents of operating income for every dollar of assets employed in its operations. This figure represented a decrease from the previous year, where the operating ROA was significantly higher at 49.51% in Jun 3, 2023.
Furthermore, the operating ROA had shown a gradual improvement from 10.06% in May 28, 2022, to -2.14% in May 29, 2021, and eventually to 0.11% in May 30, 2020 - where the company experienced negative and marginal returns on assets, respectively.
The fluctuation in operating ROA suggests varying levels of operational efficiency and profitability over the years for Cal-Maine Foods Inc. It is essential for the company to analyze the underlying factors contributing to these fluctuations to make informed strategic decisions moving forward.