Calavo Growers Inc (CVGW)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -8,344 | -6,249 | -11,818 | -13,625 | 36,646 |
| Total assets | US$ in thousands | 386,854 | 385,746 | 445,402 | 429,624 | 390,360 |
| ROA | -2.16% | -1.62% | -2.65% | -3.17% | 9.39% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $-8,344K ÷ $386,854K
= -2.16%
Based on the provided data, Calavo Growers, Inc's return on assets (ROA) has exhibited fluctuating performance over the past five years. The ROA was negative in the most recent two years, at -2.16% in 2023 and -1.62% in 2022, indicating that the company's net income generated from its assets was insufficient to cover the costs associated with those assets. This represents a decline from the negative ROA of -2.65% in 2021 and -3.17% in 2020. Furthermore, the ROA was notably positive in 2019 at 9.39%, demonstrating a strong ability to generate earnings relative to its assets in that year.
In summary, the company's ROA has portrayed a diminishing trend in recent years, with two consecutive years of negative performance, highlighting potential challenges in effectively utilizing its assets to generate earnings. This requires further investigation to understand the factors contributing to this decline and to determine potential strategies for improvement.