Insteel Industries Inc (IIIN)
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 | 33,956 | 160,759 | 83,978 | 21,206 | 4,457 |
| Total assets | US$ in thousands | 447,513 | 471,745 | 390,710 | 337,902 | 293,009 |
| Operating ROA | 7.59% | 34.08% | 21.49% | 6.28% | 1.52% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $33,956K ÷ $447,513K
= 7.59%
To analyze Insteel Industries, Inc.'s operating return on assets (operating ROA) over the past five years, we observe a fluctuating trend. In 2019, the operating ROA was at 1.90%, demonstrating a modest return on the company's operating assets. Over the following year, there was a notable increase to 7.23%, indicating an improvement in the company's efficiency in generating operating income from its assets. This positive trend continued into 2021, with the operating ROA reaching 22.82%, signifying a significant enhancement in the company's operating profitability and asset utilization. However, in 2022, there was a substantial jump to 34.18%, reflecting a sharp increase in the company's ability to generate operating income relative to its assets. Notably, in 2023, the operating ROA declined to 7.76%, though it remained higher than the 2019 level, indicating a stable but relatively lower return compared to the previous year. Overall, while there have been fluctuations, Insteel Industries has shown a strong ability to generate operating income from its assets, displaying positive performance in asset utilization and operational efficiency.
Peer comparison
Sep 30, 2023