Carpenter Technology Corporation (CRS)

Operating return on assets (Operating ROA)

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Operating income (ttm)	US$ in thousands	323,000	277,600	241,000	193,800	133,100	94,800	56,600	2,500	-24,900	-120,300	-161,400	-218,900	-248,600	-326,000	-227,300	-83,300	25,300	241,400	255,900	256,300
Total assets	US$ in thousands	3,291,700	3,176,200	3,159,200	3,076,800	3,053,900	3,094,300	3,056,500	2,939,900	2,932,300	3,230,200	2,879,900	2,959,900	2,971,200	3,011,000	3,043,900	3,128,700	3,227,200	3,429,400	3,403,600	3,341,500
Operating ROA		9.81%	8.74%	7.63%	6.30%	4.36%	3.06%	1.85%	0.09%	-0.85%	-3.72%	-5.60%	-7.40%	-8.37%	-10.83%	-7.47%	-2.66%	0.78%	7.04%	7.52%	7.67%

June 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $323,000K ÷ $3,291,700K
= 9.81%

Operating return on assets (ROA) measures how efficiently a company is generating operating profits relative to its total assets. A higher operating ROA indicates that a company is utilizing its assets effectively to generate profits.

Analyzing Carpenter Technology Corporation's operating ROA over the past several quarters, we observe a fluctuating trend. The operating ROA has shown improvement over the quarters, moving from negative values towards positive territory.

In the most recent quarter, ending June 30, 2024, Carpenter Technology Corporation achieved an operating ROA of 9.81%, indicating a significant increase in profitability compared to the previous quarters. This improvement suggests that the company has been able to enhance its operational efficiency and profitability.

However, it is essential to note that Carpenter Technology Corporation had faced challenges in the past, as reflected in the negative operating ROA figures. The company experienced a decline in operating profitability in the earlier quarters, but it has managed to turn the situation around and improve its performance.

Overall, the recent positive trend in operating ROA for Carpenter Technology Corporation signifies a positive sign of improved operational efficiency and profitability, which could indicate a positive outlook for the company's financial performance in the future.