CSW Industrials Inc (CSWI)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 159,118 | 139,066 | 97,380 | 59,220 | 65,854 |
| Total assets | US$ in thousands | 1,043,330 | 1,043,450 | 995,360 | 879,522 | 374,059 |
| Operating ROA | 15.25% | 13.33% | 9.78% | 6.73% | 17.61% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $159,118K ÷ $1,043,330K
= 15.25%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's efficiency in generating operating profits from its assets. For CSW Industrials Inc, the operating ROA has shown a general increasing trend over the past five years, which is a positive indicator of improving operational efficiency and asset utilization.
As of March 31, 2024, CSW Industrials Inc's operating ROA stands at 15.25%, reflecting a continued improvement from the previous years. This indicates that for every dollar of assets held by the company, it generated 15.25 cents in operating income.
The significant improvement in operating ROA from 6.73% in March 2021 to 15.25% in March 2024 suggests that the company has become more efficient in using its assets to generate operating profits. This could be attributed to better cost controls, increased sales, or more effective management of assets.
While the operating ROA dipped in March 2022 to 9.78%, it rebounded and surpassed previous levels in the subsequent years, reaching a peak of 17.61% in March 2020 before stabilizing at the current level.
In conclusion, the increasing trend in CSW Industrials Inc's operating ROA indicates improving operational efficiency and profitability, highlighting the company's ability to generate higher returns from its assets over time.
Peer comparison
Mar 31, 2024