Embecta Corp (EMBC)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021
Operating income (ttm)	US$ in thousands	178,200	221,500	78,000	123,800	167,100	194,900
Total assets	US$ in thousands	1,217,800	1,214,400	1,252,100	1,210,000	1,196,900	1,086,400	1,049,800	833,500	739,900
Operating ROA		14.63%	18.24%	6.23%	10.23%	13.96%	17.94%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $178,200K ÷ $1,217,800K
= 14.63%

Embecta Corp's operating return on assets (operating ROA) has displayed some fluctuations over the past few quarters. The operating ROA decreased from 13.96% in the first quarter of 2022 to 10.23% in the first quarter of 2023, indicating a decline in the company's profitability relative to its assets during this period.

However, the operating ROA improved in the second quarter of 2023 to 6.23%, but this uptick was short-lived as it increased significantly in the third quarter of 2023 to 18.24%. This substantial increase suggests that the company was able to generate higher operating income relative to its assets in that period.

In the most recent quarter of December 31, 2023, Embecta Corp's operating ROA decreased slightly to 14.63%. Overall, the company's operating ROA has shown variability, with peaks and troughs in performance over the past few quarters. It is important for stakeholders to monitor future quarters to see if the company can sustain or improve its operating ROA to ensure efficient utilization of its assets and maximize profitability.