Catalent Inc (CTLT)
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 | -749,000 | -163,000 | 730,000 | 828,000 | 394,000 |
| Total assets | US$ in thousands | 9,753,000 | 10,777,000 | 10,508,000 | 9,112,000 | 7,777,000 |
| Operating ROA | -7.68% | -1.51% | 6.95% | 9.09% | 5.07% |
June 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-749,000K ÷ $9,753,000K
= -7.68%
Operating ROA is a key financial metric that indicates how effectively a company is utilizing its assets to generate operating income. In the case of Catalent Inc, the trend in operating ROA has been fluctuating over the past five years.
In 2024, Catalent Inc reported a negative operating ROA of -7.68%, a significant decline from the previous year's -1.51%. This indicates that the company's operating income generated from its assets decreased at a higher rate than the decrease in total assets during the year.
The noticeable decline in operating ROA in 2024 could be a cause for concern as it suggests that Catalent Inc's operational efficiency worsened during that period. It may signal inefficiencies in asset utilization or a decrease in operating income relative to the size of the asset base.
On a positive note, Catalent Inc had shown an improving trend in operating ROA from 2022 (6.95%) to 2023 (9.09%), indicating a more efficient use of assets to generate operating income during those years. The company's operating ROA was also relatively healthy in 2020 at 5.07%.
In conclusion, Catalent Inc's operating ROA has exhibited fluctuations over the past five years, with a notable decrease in 2024. Further analysis of the company's asset management and operational performance would be necessary to understand the factors driving these changes in operating ROA.
Peer comparison
Jun 30, 2024