Edgewell Personal Care Co (EPC)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 227,000 | 182,300 | 239,900 | 176,000 | 243,800 |
| Total assets | US$ in thousands | 3,740,700 | 3,713,100 | 3,674,600 | 3,540,900 | 3,420,900 |
| Operating ROA | 6.07% | 4.91% | 6.53% | 4.97% | 7.13% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $227,000K ÷ $3,740,700K
= 6.07%
Based on the operating return on assets (operating ROA) of Edgewell Personal Care Co over the past five years, the company's performance in generating operating income from its assets has varied. The operating ROA has fluctuated within the range of 4.93% to 8.48% during this period, indicating changes in the company's ability to generate profits from its operational assets.
The operating ROA was at its highest in 2019, standing at 8.48%, suggesting that the company was more efficient in utilizing its assets to generate operating income during that year. However, in the subsequent years, the operating ROA experienced fluctuations, reaching its lowest point at 4.93% in 2020, before increasing to 6.51% in 2023.
These fluctuations indicate that the company's operational efficiency and profitability in relation to its assets have not been consistently improving, and the management may need to focus on optimizing the utilization of operational assets to generate higher returns. It is important for stakeholders to closely monitor this metric and the company's operational performance to ensure sustained efficiency and profitability in the future.
Peer comparison
Sep 30, 2023