Greif Bros Corporation (GEF)
Return on assets (ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 359,200 | 376,700 | 390,700 | 108,800 | 171,000 |
| Total assets | US$ in thousands | 5,960,800 | 5,469,900 | 5,815,800 | 5,510,900 | 5,426,700 |
| ROA | 6.03% | 6.89% | 6.72% | 1.97% | 3.15% |
October 31, 2023 calculation
ROA = Net income ÷ Total assets
= $359,200K ÷ $5,960,800K
= 6.03%
Greif Inc's return on assets (ROA) is a key metric that measures the company's ability to generate profits from its assets. The ROA is calculated by dividing the company's net income by its average total assets. Here is the analysis of Greif Inc's ROA based on the provided data:
- In October 2023, Greif Inc's ROA was 6.03%, indicating that the company generated a return of 6.03% on its total assets. This shows a slight decrease from the previous year.
- In October 2022, the ROA was 6.89%, which was a slightly higher return compared to 2023, indicating that the company was more efficient in generating profits from its assets.
- In October 2021, the ROA was 6.72%, showing a relatively stable performance in terms of asset utilization and profitability.
- In October 2020, the ROA was 1.97%, which was a significant drop compared to the previous years. This indicates a decline in the company's ability to generate profits from its assets.
- In October 2019, the ROA was 3.15%, showing an improvement from the previous year but still lower than the levels achieved in 2021 and 2022.
Overall, Greif Inc's ROA has shown fluctuations over the years, with lower returns in 2020 and a subsequent recovery in the following years. This could be due to changes in the company's profitability and asset utilization strategies. It is essential for the company to analyze the reasons for these fluctuations and work towards consistently improving its ROA to create value for shareholders and stakeholders.