Cal-Maine Foods Inc (CALM)
Return on assets (ROA)
| May 31, 2025 | Jun 1, 2024 | May 31, 2024 | Jun 3, 2023 | May 31, 2023 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,220,050 | 277,888 | 277,888 | 758,024 | 758,024 |
| Total assets | US$ in thousands | 3,102,490 | 2,184,760 | 2,184,760 | 1,954,520 | 1,954,520 |
| ROA | 39.32% | 12.72% | 12.72% | 38.78% | 38.78% |
May 31, 2025 calculation
ROA = Net income ÷ Total assets
= $1,220,050K ÷ $3,102,490K
= 39.32%
The return on assets (ROA) for Cal-Maine Foods Inc. exhibits significant variability over the specified periods. As of May 31, 2023, the ROA stood at 38.78%, indicating a robust level of profitability relative to the company's total assets at that time. This high ROA suggests effective utilization of assets to generate earnings.
By June 3, 2023, the ROA remained unchanged at 38.78%, reflecting stability during this short interval. However, a notable decline is observed by May 31, 2024, when the ROA decreased substantially to 12.72%. This marked reduction signifies a significant decrease in the company's efficiency in converting its assets into net income, potentially due to lower profitability, increased asset base, or a change in operational performance.
Interestingly, the ROA appears to recover markedly by May 31, 2025, reaching 39.32%. This rebound indicates a return to a high level of asset efficiency and profitability, surpassing even the initial readings from 2023. The increase suggests improvements in operational performance, cost management, or other favorable factors impacting net income relative to total assets.
Overall, the data indicates that Cal-Maine Foods Inc. experienced a period of strong asset profitability in 2023, a contraction in 2024, followed by a significant recovery in 2025. These fluctuations highlight the company's variable efficiency in generating earnings from its assets across the observed periods.