Matthews International Corporation (MATW)
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 | -12,323 | 88,117 | -43,937 | 42,034 | -64,193 |
| Total assets | US$ in thousands | 1,834,890 | 1,887,380 | 1,882,770 | 2,032,080 | 2,072,630 |
| Operating ROA | -0.67% | 4.67% | -2.33% | 2.07% | -3.10% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-12,323K ÷ $1,834,890K
= -0.67%
The operating return on assets (ROA) for Matthews International Corporation has fluctuated over the past five years. In 2024, the operating ROA was negative at -0.67%, indicating that the company's operating income generated from its assets was insufficient to cover its asset base. This may be a cause for concern as it suggests a potential inefficiency in utilizing assets to generate profits.
In the preceding years, there was variability in the operating ROA. In 2023, the company achieved a relatively strong operating ROA of 4.67%, indicating efficient use of assets to generate operating income. However, in 2022 and 2020, the operating ROA was negative at -2.33% and -3.10% respectively, showing that the company faced challenges in generating operating income from its assets during those years.
It is essential for Matthews International Corporation to monitor and improve its operating ROA to ensure optimal utilization of its assets in generating profits. Continued negative or inconsistent operating ROA figures could indicate inefficiencies in the company's operations and may require strategic adjustments to improve performance in the future.