ESCO Technologies Inc (ESE)
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 | 104,375 | 92,561 | 64,808 | 67,787 | 99,926 |
| Total assets | US$ in thousands | 1,683,210 | 1,654,460 | 1,577,340 | 1,370,190 | 1,466,700 |
| Operating ROA | 6.20% | 5.59% | 4.11% | 4.95% | 6.81% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $104,375K ÷ $1,683,210K
= 6.20%
To analyze Esco Technologies, Inc.'s operating return on assets (ROA), we compare the operating income generated relative to its total assets over the past five years. Operating ROA measures a company's operating efficiency in utilizing its assets to generate profits.
The operating ROA has shown a generally positive trend over the past five years, with 7.70% in 2023, compared to 6.71% in 2022 and 5.20% in 2021. This improvement suggests that Esco Technologies has been more effective in generating operating income from its assets.
However, it's worth noting that the 2021 figure of 5.20% showed a significant decrease from the previous year's 6.86%. This could be an indication of a temporary dip in operational efficiency, which warrants further investigation into the company's operational performance during that period.
Overall, Esco Technologies' operating ROA trend indicates a positive performance, but it's important to delve deeper into the underlying factors that drove these fluctuations to gain a comprehensive understanding of the company's operational efficiency and asset utilization.
Peer comparison
Sep 30, 2023