Commercial Metals Company (CMC)
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 | 389,704 | 1,194,060 | 9,431 | -227,282 | -198,329 |
| Total assets | US$ in thousands | 6,639,090 | 6,237,030 | 4,638,670 | 4,081,730 | 3,758,770 |
| Operating ROA | 5.87% | 19.14% | 0.20% | -5.57% | -5.28% |
August 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $389,704K ÷ $6,639,090K
= 5.87%
To analyze Commercial Metals Co.'s operating return on assets (operating ROA) over the past five years, we can see a fluctuating trend in the performance. In 2023, the operating ROA stood at 17.60%, reflecting a decrease from the previous year's 21.03%. This decline indicates a less efficient utilization of assets to generate operating income. However, when compared to 2021 and 2020, the operating ROA has improved, indicating better asset utilization. Additionally, there has been a consistent upward trend in operating ROA since 2019, which suggests improving operational efficiency and increased profitability relative to the assets deployed. Overall, the company has shown resilience in maintaining a relatively strong operating ROA, which is a positive signal for its operational performance.
Peer comparison
Aug 31, 2023