Insteel Industries Inc (IIIN)
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 | 19,231 | 33,956 | 160,759 | 83,978 | 21,206 |
| Total assets | US$ in thousands | 422,552 | 447,513 | 471,745 | 390,710 | 337,902 |
| Operating ROA | 4.55% | 7.59% | 34.08% | 21.49% | 6.28% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $19,231K ÷ $422,552K
= 4.55%
The operating return on assets (ROA) of Insteel Industries Inc has fluctuated over the past five years. In 2024, the operating ROA was 4.55%, representing a decrease from the previous year's figure of 7.59%. This downward trend suggests a potential decline in the company's operating efficiency and/or profitability.
Comparing 2024 to 2020, there has been a notable increase in operating ROA, with the percentage rising from 6.28% to 4.55%. However, the significant drop from 34.08% in 2022 to 4.55% in 2024 indicates a potential issue in the company's operational performance in the most recent period.
Overall, Insteel Industries Inc's operating ROA has shown volatility, indicating fluctuations in its ability to generate operating income from its assets efficiently. Further analysis and investigation into the company's operational strategies, cost management, and revenue generation may be necessary to understand the factors driving these fluctuations in operating ROA.
Peer comparison
Sep 30, 2024