Commercial Metals Company (CMC)

Operating return on assets (Operating ROA)

		Aug 31, 2024	May 31, 2024	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
Operating income (ttm)	US$ in thousands	-247,339	-84,812	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
Total assets	US$ in thousands	6,817,840	6,710,230	6,662,260	6,695,170	6,639,090	6,639,090	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
Operating ROA		-3.63%	-1.26%	1.55%	4.11%	5.99%	12.61%	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%

August 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-247,339K ÷ $6,817,840K
= -3.63%

Commercial Metals Company's operating return on assets (operating ROA) has displayed fluctuating trends over the past several quarters. The operating ROA declined from 5.40% in February 2020 to -3.63% in August 2024, showing a significant decrease in profitability.

The company experienced a period of consistent improvement in operating ROA from August 2022 to May 2023, reaching a peak of 14.35% in February 2023. However, there was a notable decline in profitability in subsequent quarters, with operating ROA dropping to 1.55% in February 2024.

It is worth noting that despite the fluctuations, Commercial Metals Company's operating ROA has generally exceeded 0% over the observed period, indicating that the company has generated positive returns from its operating activities relative to its assets. This suggests a certain level of operational efficiency and effectiveness in utilizing its assets to generate revenue.

Overall, the downward trend in operating ROA over the past few quarters may call for further analysis of the company's operational performance and asset management strategies to identify potential areas for improvement and to sustain profitability.