Commercial Metals Company (CMC)

Return on assets (ROA)

		Aug 31, 2024	Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020
Net income	US$ in thousands	485,491	859,760	1,217,260	412,865	279,503
Total assets	US$ in thousands	6,817,840	6,639,090	6,237,030	4,638,670	4,081,730
ROA		7.12%	12.95%	19.52%	8.90%	6.85%

August 31, 2024 calculation

ROA = Net income ÷ Total assets
= $485,491K ÷ $6,817,840K
= 7.12%

Commercial Metals Company's return on assets (ROA) has fluctuated over the past five years, as indicated by the data provided. The ROA decreased from 19.52% in 2022 to 8.90% in 2021, and then slightly increased to 12.95% in 2023. However, in the most recent year, the ROA decreased to 7.12%. This suggests that the company's ability to generate profits from its assets has declined compared to the previous year. It is important to further investigate the reasons behind this decrease in ROA to determine if it is due to changes in financial performance or asset management strategies.