Commercial Metals Company (CMC)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 680,257 | 774,259 | 859,760 | 964,224 | 1,042,682 | 1,246,147 | 1,217,262 | 1,080,945 | 898,924 | 581,967 | 413,171 | 328,481 | 262,807 | 260,248 | 279,503 | 297,991 | 311,647 | 261,699 | 198,093 | 163,542 |
| 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 |
| ROA | 10.21% | 11.56% | 12.95% | 14.79% | 15.71% | 18.77% | 19.52% | 17.71% | 16.33% | 12.32% | 8.91% | 7.48% | 6.47% | 6.48% | 6.85% | 7.53% | 7.97% | 6.87% | 5.27% | 4.34% |
February 29, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $680,257K ÷ $6,662,260K
= 10.21%
The return on assets (ROA) for Commercial Metals Company has shown a fluctuating trend over the past several periods, ranging from a low of 4.34% in November 2019 to a high of 19.52% in August 2022. The ROA measures the company's efficiency in generating profits from its assets, and a higher ROA indicates better profitability.
The ROA peaked at 19.52% in August 2022, signifying a strong performance in utilizing its assets to generate earnings. However, the ROA has since shown a decreasing trend, reaching 10.21% in February 2024. This decline may suggest challenges in maintaining or improving profitability relative to the size of the company's asset base.
It is important for stakeholders to monitor the ROA trend closely to assess the company's ability to efficiently generate profits from its assets. Factors such as operational efficiency, asset management, and profitability margins can influence the ROA. Further analysis and comparison with industry benchmarks may provide additional insights into Commercial Metals Company's performance in utilizing its assets effectively.
Peer comparison
Feb 29, 2024