Campbell Soup Company Common Stock (CPB)
Operating return on assets (Operating ROA)
| Jul 28, 2024 | Jul 30, 2023 | Jul 31, 2022 | Aug 1, 2021 | Aug 2, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,000,000 | 1,312,000 | 1,163,000 | 1,545,000 | 1,107,000 |
| Total assets | US$ in thousands | 15,235,000 | 12,058,000 | 11,892,000 | 11,734,000 | 12,372,000 |
| Operating ROA | 6.56% | 10.88% | 9.78% | 13.17% | 8.95% |
July 28, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,000,000K ÷ $15,235,000K
= 6.56%
Campbell Soup Company's operating return on assets (ROA) has fluctuated over the past five years, indicating varying levels of efficiency in generating operating profits from its assets. The trend shows a decline from 13.17% in August 2021 to 6.56% in July 2024. This suggests that the company may have faced challenges in maintaining its profitability relative to its asset base.
The highest operating ROA of 13.17% in August 2021 indicates that Campbell Soup Company was able to generate more operating income per dollar of assets during that period. However, the subsequent decrease in this ratio to 6.56% in July 2024 may raise concerns about the company's operational efficiency and effectiveness in utilizing its assets to generate profits.
Overall, the fluctuation in Campbell Soup Company's operating ROA over the past five years highlights the importance of closely monitoring the company's performance and efficiency in utilizing its assets to drive profitability. Further analysis and investigation into the factors driving these fluctuations would be beneficial for investors and stakeholders in assessing the company's financial health and operational effectiveness.
Peer comparison
Jul 28, 2024