Carpenter Technology Corporation (CRS)

Return on assets (ROA)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	376,000	186,500	56,400	-49,100	-229,600
Total assets	US$ in thousands	3,486,800	3,291,700	3,053,900	2,932,300	2,971,200
ROA		10.78%	5.67%	1.85%	-1.67%	-7.73%

June 30, 2025 calculation

ROA = Net income ÷ Total assets
= $376,000K ÷ $3,486,800K
= 10.78%

The analysis of Carpenter Technology Corporation’s return on assets (ROA) over the specified period reveals a significant improvement in the company's profitability relative to its total assets. On June 30, 2021, the ROA was negative at -7.73%, indicating that the company was experiencing losses that eroded its assets, which is characteristic of a period of financial distress or operational challenges. By June 30, 2022, the ROA substantially improved to -1.67%, reflecting a marked reduction in the extent of losses, although it remained negative, suggesting that the company had not yet achieved profitability but was progressing toward it.

The notable turnaround is observed by June 30, 2023, when the ROA turned positive at 1.85%, signifying that Carpenter Technology was generating net income relative to its assets, thereby entering into a profitable phase. This positive shift indicates enhanced operational efficiency, profitability, or a combination of both, and suggests a strengthening financial performance during this period.

Further progression is evident by June 30, 2024, with the ROA increasing to 5.67%. This growth demonstrates continued improvement in asset utilization and profitability, positioning the company on an upward trajectory. The positive trend culminates in June 30, 2025, with an ROA of 10.78%, indicating robust profitability and effective asset management.

Overall, the trajectory of Carpenter Technology’s ROA from negative to double-digit positive figures over these years reflects a significant transformation in the company’s financial health. The movement from losses to strong profitability suggests effective strategic initiatives, operational improvements, or market conditions favorable to the company's core business activities.