Matthews International Corporation (MATW)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -59,660 | 39,291 | -99,774 | 2,910 | -87,155 |
| Total assets | US$ in thousands | 1,834,890 | 1,887,380 | 1,882,770 | 2,032,080 | 2,072,630 |
| ROA | -3.25% | 2.08% | -5.30% | 0.14% | -4.21% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $-59,660K ÷ $1,834,890K
= -3.25%
Matthews International Corporation's return on assets (ROA) has shown significant fluctuation over the past five years. In 2024, the ROA deteriorated to -3.25%, marking a steep decline from the previous year's positive ROA of 2.08%. This negative ROA indicates that the company generated a net loss relative to its assets in 2024.
Conversely, in 2023, Matthews International Corporation achieved a ROA of 2.08%, representing a solid performance in effectively utilizing its assets to generate profits. However, this positive trend reversed in 2022 when the ROA plummeted to -5.30%, suggesting a substantial decline in asset efficiency and profitability.
The ROA in 2021 was a modest 0.14%, indicating a slight improvement from the previous year's negative ROA of -4.21%. Despite the improvement, the company's ability to generate profits from its assets remained relatively low in 2021.
Overall, the fluctuating ROA figures suggest that Matthews International Corporation has experienced challenges in effectively leveraging its assets to generate profits consistently over the past five years. Further analysis of the company's operational and financial strategies may be warranted to address these fluctuations and improve its overall profitability.