Griffon Corporation (GFF)
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 | 398,297 | 196,887 | -189,067 | 170,583 | 139,540 |
Total assets | US$ in thousands | 2,370,950 | 2,418,880 | 2,816,470 | 2,604,680 | 2,448,590 |
Operating ROA | 16.80% | 8.14% | -6.71% | 6.55% | 5.70% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $398,297K ÷ $2,370,950K
= 16.80%
Griffon Corporation's operating return on assets (operating ROA) has shown variability over the past five years. In 2024, the operating ROA improved significantly to 16.80% from 8.14% in 2023. This rise indicates that Griffon Corporation's operating income generated from its assets has increased considerably relative to the asset base.
Moreover, the negative operating ROA in 2022 (-6.71%) suggests that Griffon Corporation experienced challenges in generating operating income compared to its asset base, leading to a loss in efficiency in asset utilization. However, the subsequent positive trends in 2021 (6.55%) and 2020 (5.70%) demonstrate a recovery and improvement in the company's operating profitability relative to its asset base during those years.
Overall, the recent surge in operating ROA for Griffon Corporation in 2024 indicates enhanced operational efficiency and profitability in utilizing its assets, potentially reflecting favorable business performance and effective asset management strategies.