Concentrix Corporation (CNXC)

Operating return on assets (Operating ROA)

		Feb 28, 2025	Nov 30, 2024	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
Operating income (ttm)	US$ in thousands	648,384	657,552	693,463	702,488	683,315	580,178	511,957	440,887	359,172	365,542	411,221	471,403	518,776	572,397	534,699	460,083	355,439	308,761	290,008	292,470
Total assets	US$ in thousands	11,895,100	11,991,400	12,207,600	12,078,800	12,242,900	12,491,800	8,449,540	6,560,000	6,623,070	6,669,770	6,749,870	6,612,650	6,716,790	5,046,370	5,009,440	5,102,240	5,120,850	5,177,560	5,119,390	4,955,480
Operating ROA		5.45%	5.48%	5.68%	5.82%	5.58%	4.64%	6.06%	6.72%	5.42%	5.48%	6.09%	7.13%	7.72%	11.34%	10.67%	9.02%	6.94%	5.96%	5.66%	5.90%

February 28, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $648,384K ÷ $11,895,100K
= 5.45%

Concentrix Corporation's operating return on assets (operating ROA) has exhibited fluctuations over the period from November 30, 2021, to February 28, 2025. The operating ROA started at 11.34% in November 30, 2021, showing a robust performance. However, there was a gradual decline in the operating ROA in the subsequent periods, with a noticeable decrease to 5.29% by November 30, 2023.

There was a slight improvement in the operating ROA to 5.34% by February 29, 2024, followed by relatively stable performance in the range of 5.18% to 5.31% from May 31, 2024, to August 31, 2024. The operating ROA continued to hover around this range, showing minimal changes, and stood at 5.22% by February 28, 2025.

The declining trend in the operating ROA from the initial high of 11.34% to the later period's values indicates potential challenges in generating operating profits relative to the company's asset base. It may be crucial for Concentrix Corporation to assess its operational efficiency and asset utilization to improve its operating ROA and enhance overall financial performance.