Carpenter Technology Corporation (CRS)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Operating income	US$ in thousands	323,100	133,100	-24,900	-248,600	25,300
Total assets	US$ in thousands	3,291,700	3,053,900	2,932,300	2,971,200	3,227,200
Operating ROA		9.82%	4.36%	-0.85%	-8.37%	0.78%

June 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $323,100K ÷ $3,291,700K
= 9.82%

Operating return on assets (operating ROA) is a key profitability ratio that measures how efficiently a company generates operating income relative to its total assets. For Carpenter Technology Corporation, the operating ROA has shown varying trends over the past five years:

- In the most recent fiscal year ending June 30, 2024, the operating ROA stood at 9.82%, indicating an improvement from the previous year.
- In the fiscal year ending June 30, 2023, the operating ROA was 4.36%, showing an increase compared to the prior year.
- In the fiscal year ending June 30, 2022, the operating ROA was -0.85%, turning positive after a negative performance in the previous year.
- In the fiscal year ending June 30, 2021, the operating ROA was -8.37%, reflecting a significant decline from the prior year.
- In the fiscal year ending June 30, 2020, the operating ROA was 0.78%, indicating a positive performance but lower than the most recent year.

Overall, the trend in operating ROA for Carpenter Technology Corporation has shown fluctuations, with recent years demonstrating improvements in profitability efficiency compared to earlier years. It is essential for the company to continue monitoring and enhancing its operating ROA to ensure sustainable profitability and optimal asset utilization.