Deere & Company (DE)
Operating return on assets (Operating ROA)
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 9,039,000 | 12,958,000 | 9,508,000 | 8,012,000 | 4,305,000 |
| Total assets | US$ in thousands | 107,320,000 | 104,087,000 | 90,030,000 | 84,114,000 | 75,091,000 |
| Operating ROA | 8.42% | 12.45% | 10.56% | 9.53% | 5.73% |
October 27, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $9,039,000K ÷ $107,320,000K
= 8.42%
Deere & Company's operating return on assets (operating ROA) has fluctuated over the past five years. In the most recent fiscal year, ending on October 27, 2024, the operating ROA was 8.42%, reflecting a decrease from the previous year. The downward trend is noticeable compared to the peak operating ROA of 12.45% in October 29, 2023. Despite the decrease, the operating ROA in 2024 remains higher than the levels recorded in 2021 and 2020, indicating improved operational efficiency and utilization of assets.
The operating ROA measures the company's ability to generate profits from its operational activities relative to its total assets. A higher operating ROA signifies that the company is effectively utilizing its assets to generate profit. Deere & Company's operating ROA performance indicates a reasonably efficient utilization of its assets, though the recent decline suggests a potential challenge in sustaining or improving operational efficiency. Continued monitoring and evaluation of the company's operating performance will be essential to identify underlying factors driving the fluctuations in the operating ROA.
Peer comparison
Oct 27, 2024