Commercial Metals Company (CMC)

Operating return on assets (Operating ROA)

		Feb 29, 2024	Nov 30, 2023	Aug 31, 2023	May 31, 2023	Feb 28, 2023	Nov 30, 2022	Aug 31, 2022	May 31, 2022	Feb 28, 2022	Nov 30, 2021	Aug 31, 2021	May 31, 2021	Feb 28, 2021	Nov 30, 2020	Aug 31, 2020	May 31, 2020	Feb 29, 2020	Nov 30, 2019	Aug 31, 2019	May 31, 2019
Operating income (ttm)	US$ in thousands	103,244	274,980	397,552	837,117	952,726	1,245,950	1,199,511	809,021	581,689	171,685	-2,731	218,601	139,937	140,591	180,468	169,720	211,105	175,324	84,536	15,288
Total assets	US$ in thousands	6,662,260	6,695,170	6,639,090	6,520,860	6,639,090	6,639,090	6,237,030	6,103,700	5,504,220	4,725,260	4,638,670	4,391,080	4,064,040	4,016,670	4,081,730	3,954,890	3,907,940	3,808,350	3,758,770	3,767,010
Operating ROA		1.55%	4.11%	5.99%	12.84%	14.35%	18.77%	19.23%	13.25%	10.57%	3.63%	-0.06%	4.98%	3.44%	3.50%	4.42%	4.29%	5.40%	4.60%	2.25%	0.41%

February 29, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $103,244K ÷ $6,662,260K
= 1.55%

The operating return on assets (operating ROA) of Commercial Metals Company has shown fluctuations over the past 20 quarters. The trend indicates that the company's ability to generate operating income relative to its assets has varied during this period.

The operating ROA ranged from a low of -0.06% in the third quarter of 2021 to a high of 19.23% in the second quarter of 2022. The company experienced significant improvement in operating ROA in the recent past, with notable peaks in the second quarter of 2022 and the first quarter of 2023. However, the operating ROA decreased in the subsequent quarters, reflecting potential challenges in generating operating income relative to the assets employed.

The operating ROA figures demonstrate the company's operational efficiency and effectiveness in utilizing its assets to generate profits. The downward trend in recent quarters may indicate shifts in the company's operating performance or changes in asset utilization efficiency. Further analysis of the company's operational strategies and asset management practices would be necessary to understand the underlying factors driving these fluctuations in operating ROA.