Calavo Growers Inc (CVGW)
Operating return on assets (Operating ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 428 | 5,987 | -9,997 | 32,162 | 71,046 |
| Total assets | US$ in thousands | 386,854 | 385,746 | 445,402 | 429,624 | 390,360 |
| Operating ROA | 0.11% | 1.55% | -2.24% | 7.49% | 18.20% |
October 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $428K ÷ $386,854K
= 0.11%
Calavo Growers, Inc's operating return on assets (operating ROA) has shown significant fluctuations over the past five years. In 2019, the operating ROA was notably high at 17.67%, indicating the company generated substantial operating income relative to its total assets. However, this figure declined sharply to 7.44% in 2020, suggestive of a decrease in the efficiency of utilizing its assets to generate operating profits. The trend continued in 2021, where the operating ROA plummeted to a mere 0.17%, reflecting a concerning decline in the company's ability to generate operating income from its assets.
In 2022, there was some recovery, with the operating ROA increasing to 2.11%, but it still remained substantially below the levels seen in 2019. The latest figure for 2023 shows a further decline to 0.92%, continuing the pattern of diminishing operational efficiency in asset utilization. Overall, the fluctuating trend in operating ROA suggests that Calavo Growers, Inc may be facing challenges in optimizing the return on its assets to generate operating income. Further investigation into the factors driving these fluctuations would be necessary to assess the company's operational performance and financial health accurately.