Korn Ferry (KFY)
Operating return on assets (Operating ROA)
| Apr 30, 2025 | Apr 30, 2024 | Apr 30, 2023 | Apr 30, 2022 | Apr 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 346,322 | 212,929 | 316,340 | 470,074 | 155,784 |
| Total assets | US$ in thousands | 3,861,220 | 3,678,870 | 3,574,440 | 3,464,550 | 3,056,530 |
| Operating ROA | 8.97% | 5.79% | 8.85% | 13.57% | 5.10% |
April 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $346,322K ÷ $3,861,220K
= 8.97%
The operating return on assets (ROA) for Korn Ferry has exhibited notable fluctuations over the specified period from April 30, 2021, to April 30, 2025. In the fiscal year ending April 30, 2021, the operating ROA was 5.10%, reflecting a relatively modest efficiency in generating operating income relative to asset base. The subsequent year demonstrated a significant increase to 13.57%, indicating a period of enhanced operational efficiency and better utilization of assets to generate operating profits.
However, this positive trend was not sustained, as the operating ROA declined to 8.85% in April 2023. This decrease may suggest a contraction in operational performance or increased asset base without a proportional increase in operating income. The following year, the operating ROA further decreased to 5.79%, approaching the levels seen in 2021, which could imply challenges in maintaining operational efficiency or shifts in business conditions impacting asset utilization.
Despite these fluctuations, the forecast for April 30, 2025, indicates a recovery to 8.97%, slightly surpassing the 2023 figure. This rebound may reflect ongoing operational adjustments, strategic initiatives, or market conditions favoring improved income generation relative to assets.
Overall, the range of operating ROA over this period suggests variability in Korn Ferry’s operational efficiency, with a peak in 2022 followed by periods of decline and subsequent recovery. This pattern highlights the importance of examining underlying operational factors, asset management strategies, and market dynamics influencing the company's profitability relative to its asset base.
Peer comparison
Apr 30, 2025