Monro Muffler Brake Inc (MNRO)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 71,425 | 79,750 | 101,298 | 72,238 | 101,702 |
| Total assets | US$ in thousands | 1,692,810 | 1,776,880 | 1,871,410 | 1,811,810 | 2,049,460 |
| Operating ROA | 4.22% | 4.49% | 5.41% | 3.99% | 4.96% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $71,425K ÷ $1,692,810K
= 4.22%
Monro Muffler Brake Inc's operating return on assets (ROA) has shown a declining trend over the past five years, from 4.96% in 2020 to 4.22% in 2024. This indicates that the company's ability to generate operating profits from its assets has weakened over time. The decreasing trend may suggest operational inefficiencies or challenges in optimizing asset utilization.
Although Monro Muffler Brake Inc's operating ROA experienced fluctuations, it reached its peak at 5.41% in 2022 before declining in the following years. This peak could indicate a period of improved operational performance and efficiency, which the company may seek to replicate in the future to enhance profitability.
Overall, a downward trend in operating ROA signals the need for the company to reassess its operational strategies to improve asset productivity and profitability in the coming years. Additional analysis of the company's operations and financial health would provide further insights into the factors influencing the operating ROA performance.
Peer comparison
Mar 31, 2024