Cal-Maine Foods Inc (CALM)
Return on assets (ROA)
| Jun 1, 2024 | Mar 2, 2024 | Dec 2, 2023 | Sep 2, 2023 | Jun 3, 2023 | Feb 25, 2023 | Nov 26, 2022 | Aug 27, 2022 | May 28, 2022 | Feb 26, 2022 | Nov 27, 2021 | Aug 28, 2021 | May 29, 2021 | Feb 27, 2021 | Nov 28, 2020 | Aug 29, 2020 | May 30, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 277,888 | 275,578 | 452,085 | 633,663 | 758,024 | 757,079 | 473,377 | 275,963 | 132,650 | 18,420 | -7,549 | 3,433 | 2,060 | 66,767 | 66,968 | 44,752 | 18,391 | -61,833 | -35,805 | -3,937 |
| Total assets | US$ in thousands | 2,184,760 | 2,133,530 | 1,966,800 | 1,900,370 | 1,954,520 | 1,992,480 | 1,763,440 | 1,554,730 | 1,427,490 | 1,282,000 | 1,231,990 | 1,211,730 | 1,229,170 | 1,231,280 | 1,200,360 | 1,167,880 | 1,206,690 | 1,117,030 | 1,111,280 | 1,096,870 |
| ROA | 12.72% | 12.92% | 22.99% | 33.34% | 38.78% | 38.00% | 26.84% | 17.75% | 9.29% | 1.44% | -0.61% | 0.28% | 0.17% | 5.42% | 5.58% | 3.83% | 1.52% | -5.54% | -3.22% | -0.36% |
June 1, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $277,888K ÷ $2,184,760K
= 12.72%
Cal-Maine Foods Inc's Return on Assets (ROA) has shown fluctuations over the past few quarters, ranging from -5.54% to 38.78%. The ROA measures the company's ability to generate profits relative to its total assets.
The trend indicates a significant increase in ROA from Nov 2019 to Sep 2023, reaching its peak at 38.78% in Jun 2023. This suggests that the company efficiently utilized its assets to generate profits during this period. However, there was a sharp decline in ROA in subsequent quarters.
The sudden drop in ROA from Sep 2023 to Nov 2023 could be a cause for concern as it fell below zero briefly, indicating potential inefficiencies in asset utilization or declining profitability. It is important for the company to closely monitor and address the factors contributing to this decline to improve future performance.
Overall, the ROA of Cal-Maine Foods Inc has shown both strengths and weaknesses over the analyzed period. Continuous monitoring and strategic management of assets will be crucial for the company to sustain and improve its profitability in the future.