Carpenter Technology Corporation (CRS)

Operating return on assets (Operating ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Operating income	US$ in thousands	525,400	323,100	133,100	-12,200	-179,200
Total assets	US$ in thousands	3,486,800	3,291,700	3,053,900	2,932,300	2,971,200
Operating ROA		15.07%	9.82%	4.36%	-0.42%	-6.03%

June 30, 2025 calculation

Operating ROA = Operating income ÷ Total assets
= $525,400K ÷ $3,486,800K
= 15.07%

The operating return on assets (ROA) for Carpenter Technology Corporation demonstrates a significant and consistent improvement over the analyzed period from June 30, 2021, to June 30, 2025. Initially, as of June 30, 2021, the company's operating ROA was reported at -6.03%, indicating an operating loss in relation to its asset base. This negative figure suggests that, at that time, the company's operational efficiency was insufficient to generate positive returns on its total assets.

By June 30, 2022, the operating ROA markedly improved, rising to -0.42%. Although still negative, this near-zero figure signifies a substantial reduction in operating losses, reflecting enhanced operational performance and potentially more effective asset utilization or cost management.

The trend continues positively in subsequent years, with the operating ROA turning positive by June 30, 2023, at 4.36%. This turn to profitability indicates that the company started generating operating income that sufficiently covered its asset base, marking a significant milestone in operational efficiency and financial health.

The upward trajectory persists, with the operating ROA reaching 9.82% by June 30, 2024, effectively doubling the previous year's figure. This indicates that the company's operational profitability relative to its assets continued to strengthen, suggesting improvements in operational margins, efficiency, or both.

By June 30, 2025, the operating ROA further increases to 15.07%, reflecting a robust improvement in operational performance. The positive and rising trend over these years signifies successful strategic and operational initiatives, leading to more effective use of assets to generate operating income. Such an upward movement in operating ROA is indicative of a healthier and more efficient operational profile, aligning with potential growth and value creation for the company.

Overall, the data portrays a transition from significant operational challenges and losses in 2021 to a substantially profitable and improving operational standing by 2025, emphasizing the company's progress in optimizing its asset utilization and operational efficiency over this period.