Haynes International Inc (HAYN)
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 | 57,606 | 55,422 | -7,143 | 612 | 17,716 |
| Total assets | US$ in thousands | 706,281 | 632,295 | 546,455 | 560,724 | 593,800 |
| Operating ROA | 8.16% | 8.77% | -1.31% | 0.11% | 2.98% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $57,606K ÷ $706,281K
= 8.16%
Operating return on assets (operating ROA) measures a company's ability to generate operating income from its assets. It is calculated by dividing operating income by average total assets.
Analysis of Haynes International Inc.'s operating ROA reveals a fluctuating trend over the last five years. In 2023, the operating ROA stood at 8.16%, indicating that the company generated 8.16 cents of operating income for every dollar of average total assets. This represented a slight decrease from the 8.77% recorded in 2022.
The significant improvement from negative figures in 2021 and 2020, when the operating ROA was -1.31% and 0.11% respectively, suggests that the company has made strides in utilizing its assets more efficiently to generate operating income. However, it is important to note that the operating ROA has not yet reached the levels seen in 2019 when it stood at 2.98%.
The company's management may need to focus on optimizing the utilization of their assets to achieve consistent and sustained improvement in operating ROA. Additionally, this metric can be benchmarked against industry peers to gain a better understanding of Haynes International Inc.'s relative performance in this aspect.
Peer comparison
Sep 30, 2023