Embecta Corp (EMBC)

Operating return on assets (Operating ROA)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022
Operating income	US$ in thousands	166,800	221,500	309,600
Total assets	US$ in thousands	1,285,300	1,214,400	1,086,400
Operating ROA		12.98%	18.24%	28.50%

September 30, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $166,800K ÷ $1,285,300K
= 12.98%

Embecta Corp's operating return on assets (operating ROA) has shown a downward trend over the past three years, decreasing from 28.50% in 2022 to 18.24% in 2023, and further dropping to 12.98% in 2024. This indicates that the company's ability to generate operating income from its assets has weakened over time. A declining operating ROA may suggest inefficiencies in the company's operations, such as lower profitability or less effective asset utilization. It is important for Embecta Corp to investigate the reasons behind this decline in operating ROA and take corrective actions to improve its operational performance and enhance the utilization of its assets for profitability.