ESCO Technologies Inc (ESE)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 116,420 | 104,375 | 92,561 | 64,808 | 67,787 |
| Total assets | US$ in thousands | 1,838,620 | 1,683,210 | 1,654,460 | 1,577,340 | 1,370,190 |
| Operating ROA | 6.33% | 6.20% | 5.59% | 4.11% | 4.95% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $116,420K ÷ $1,838,620K
= 6.33%
The operating return on assets (ROA) for ESCO Technologies Inc has shown a generally positive trend over the past five years. From 2020 to 2021, there was a slight decrease from 4.95% to 4.11%. However, from 2021 to 2024, there has been a steady increase in operating ROA, reaching 6.33% as of September 30, 2024. This indicates that the company has been able to generate more operating income relative to its total assets over time.
A higher operating ROA suggests that the company is using its assets efficiently to generate operating profits. The increase in the operating ROA can be seen as a positive indicator of the company's operational performance and management effectiveness in utilizing its assets to generate profits. Overall, the trend in ESCO Technologies Inc's operating ROA reflects improvements in profitability and efficiency in recent years.
Peer comparison
Sep 30, 2024