Griffon Corporation (GFF)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 398,297 | 366,031 | 378,877 | 199,620 | 196,887 | -316,095 | -315,066 | -146,452 | -189,067 | 276,986 | 215,878 | 156,720 | 170,657 | 168,538 | 177,926 | 159,844 | 139,540 | 126,181 | 111,181 | 111,337 |
| Total assets | US$ in thousands | 2,370,950 | 2,378,860 | 2,423,730 | 2,393,310 | 2,418,880 | 2,571,220 | 2,660,160 | 2,777,240 | 2,816,470 | 3,504,230 | 3,787,020 | 2,582,740 | 2,604,680 | 2,548,660 | 2,524,280 | 2,484,440 | 2,448,590 | 2,310,220 | 2,318,750 | 2,257,800 |
| Operating ROA | 16.80% | 15.39% | 15.63% | 8.34% | 8.14% | -12.29% | -11.84% | -5.27% | -6.71% | 7.90% | 5.70% | 6.07% | 6.55% | 6.61% | 7.05% | 6.43% | 5.70% | 5.46% | 4.79% | 4.93% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $398,297K ÷ $2,370,950K
= 16.80%
Griffon Corporation's operating return on assets (operating ROA) has shown significant fluctuations over the past few quarters. The operating ROA ranged from negative figures in the first two quarters of 2023 to positive double-digit percentages in the most recent quarter of September 2024. This indicates that the company's ability to generate operating income from its assets has been volatile.
The operating ROA steadily improved from negative levels in early 2023 to reach a peak of 16.80% in September 2024. This positive trend suggests that Griffon Corporation has been able to enhance its operational efficiency and profitability in recent quarters.
However, it is important to note that the operating ROA has shown variability over the periods, implying potential fluctuations in the company's operational performance and asset utilization efficiency. Investors and stakeholders should monitor these fluctuations closely to assess Griffon Corporation's ability to consistently generate returns from its assets in the long term.
Overall, while the recent improvement in operating ROA is a positive development, ongoing scrutiny of Griffon Corporation's operational performance and asset management practices is recommended to evaluate its sustainability and long-term value creation potential.