Callaway Golf Company (MODG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -1,257,200 | 171,000 | 211,100 | 224,100 | 237,700 | 235,600 | 230,000 | 243,000 | 256,800 | 236,837 | 244,637 | 222,937 | 204,737 | 227,145 | 214,654 | -70,095 | -105,515 | -95,916 | -118,936 | 103,712 |
| Total assets | US$ in thousands | 7,636,100 | 9,158,100 | 9,100,400 | 9,092,000 | 9,120,600 | 8,982,000 | 8,964,400 | 8,941,400 | 8,590,400 | 8,221,700 | 8,156,200 | 8,079,400 | 7,747,800 | 7,397,380 | 7,271,830 | 7,108,560 | 1,980,600 | 1,966,310 | 1,859,660 | 2,135,080 |
| Operating ROA | -16.46% | 1.87% | 2.32% | 2.46% | 2.61% | 2.62% | 2.57% | 2.72% | 2.99% | 2.88% | 3.00% | 2.76% | 2.64% | 3.07% | 2.95% | -0.99% | -5.33% | -4.88% | -6.40% | 4.86% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-1,257,200K ÷ $7,636,100K
= -16.46%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's efficiency in generating profits from its assets. For Callaway Golf Company, the trend of operating ROA over the past few years shows fluctuations.
Starting from March 31, 2020, where the operating ROA was 4.86%, the ratio turned negative in June and remained negative until June 30, 2021. This negative trend could indicate inefficiencies in the company's operations leading to a loss. From September 2021 to December 2022, the operating ROA showed a gradual improvement, reaching a peak of 3.07% on September 30, 2021.
However, the operating ROA declined slightly in the subsequent quarters, hovering around 2-3% until September 30, 2023. From that point, the ratio decreased further, reaching 1.87% on September 30, 2024. The most significant decline was recorded on December 31, 2024, where the operating ROA dropped to -16.46%.
This sharp decline in operating ROA at the end of 2024 indicates a substantial decrease in profitability relative to the company's assets, which could be a cause for concern. It would be important for Callaway Golf Company to closely examine its operational efficiency, asset utilization, and profitability drivers to reverse this negative trend and improve its financial performance in the future.
Peer comparison
Dec 31, 2024