Greif Bros Corporation (GEF)
Operating return on assets (Operating ROA)
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 518,000 | 605,500 | 646,500 | 696,600 | 705,600 | 621,200 | 609,300 | 576,700 | 587,200 | 585,200 | 535,500 | 424,300 | 295,700 | 304,900 | 328,800 | 392,500 | 411,100 | 399,100 | 386,700 | 375,100 |
| Total assets | US$ in thousands | 5,969,100 | 5,960,800 | 5,873,500 | 5,911,500 | 5,690,600 | 5,469,900 | 5,626,100 | 5,622,900 | 5,766,600 | 5,815,800 | 5,723,600 | 5,587,900 | 5,566,600 | 5,510,900 | 5,593,800 | 5,529,000 | 5,721,500 | 5,426,700 | 5,552,400 | 5,510,400 |
| Operating ROA | 8.68% | 10.16% | 11.01% | 11.78% | 12.40% | 11.36% | 10.83% | 10.26% | 10.18% | 10.06% | 9.36% | 7.59% | 5.31% | 5.53% | 5.88% | 7.10% | 7.19% | 7.35% | 6.96% | 6.81% |
January 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $518,000K ÷ $5,969,100K
= 8.68%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operations relative to its total assets. The trend analysis of Greif Inc's operating ROA reveals a gradual decline in performance over the past eight quarters.
The ratio has decreased from 12.24% in Q3 2022 to 9.39% in Q1 2024. This downward trend indicates that the company's operating profitability in relation to its total assets has been diminishing over time.
The peak operating ROA of 12.88% in Q4 2022 was followed by a consistent decline, with a dip to 10.02% in Q4 2023 and further decreases in subsequent quarters. This downward trajectory suggests potential inefficiencies in the company's operational management or declining asset utilization.
Overall, the declining trend in Greif Inc's operating ROA signals a need for the company to assess and potentially improve its operational efficiency and asset utilization to enhance profitability and achieve better returns on its assets in the future.