Commercial Metals Company (CMC)

Return on assets (ROA)

		Aug 31, 2023	Aug 31, 2022	Aug 31, 2021	Aug 31, 2020	Aug 31, 2019
Net income	US$ in thousands	859,760	1,217,260	412,865	279,503	198,093
Total assets	US$ in thousands	6,639,090	6,237,030	4,638,670	4,081,730	3,758,770
ROA		12.95%	19.52%	8.90%	6.85%	5.27%

August 31, 2023 calculation

ROA = Net income ÷ Total assets
= $859,760K ÷ $6,639,090K
= 12.95%

To analyze Commercial Metals Co.'s return on assets (ROA) over the past five years, we can observe a fluctuating trend. The ROA was 12.95% as of August 31, 2023, representing a decrease from the prior year's 19.52%. However, the ROA has shown an overall increasing trend from 5.27% in 2019 to 12.95% in 2023. This indicates that the company has been more efficient in generating profits relative to its total assets over the past five years. The ROA peaked in 2022 at 19.52%, reflecting a potential period of excellent asset utilization and profitability. Nonetheless, the recent decrease in ROA suggests a potential need for further analysis to understand the factors contributing to this change. Overall, continued monitoring of the company's asset utilization and profitability is recommended to gauge its operational efficiency and overall financial performance.