Madison Square Garden Sports Corp (MSGS)
Operating return on assets (Operating ROA)
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 14,808 | 146,038 | 85,174 | 86,080 | -78,443 |
| Total assets | US$ in thousands | 1,472,970 | 1,346,290 | 1,315,020 | 1,301,970 | 1,309,940 |
| Operating ROA | 1.01% | 10.85% | 6.48% | 6.61% | -5.99% |
June 30, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $14,808K ÷ $1,472,970K
= 1.01%
The operating return on assets (operating ROA) for Madison Square Garden Sports Corp has demonstrated significant fluctuations over the period from June 30, 2021, to June 30, 2025. As of June 30, 2021, the company experienced an operating ROA of -5.99%, indicating that during that fiscal year, operating income was insufficient to cover the asset base, likely reflecting operational challenges or the impacts of the COVID-19 pandemic on the sports and entertainment sectors.
By June 30, 2022, the operating ROA improved markedly to 6.61%, signaling a recovery in operational efficiency and profitability relative to the asset base, possibly driven by the resumption of events and increased revenue streams. The positive shift persisted into June 30, 2023, with the operating ROA slightly declining to 6.48%, yet remaining well above the prior year, suggesting stability in operational profitability.
The notable increase was observed in the fiscal year ending June 30, 2024, when operating ROA surged to 10.85%. This indicates a substantial enhancement in the company's ability to generate operating income relative to its assets, which could be attributable to improved revenue performance, cost management, or asset utilization efficiencies.
However, by June 30, 2025, the operating ROA declined sharply to 1.01%. Despite still being positive, this represents a significant decrease from the previous year, implying potential challenges in maintaining operational profitability or asset utilization at the same elevated levels. This notable decline warrants further analysis into potential factors such as operational costs, changing revenue streams, or strategic shifts that may have impacted profitability.
Overall, Madison Square Garden Sports Corp's operating ROA has shown a trajectory of initial decline into negative territory, followed by notable recovery and peak performance in 2024, before experiencing a considerable contraction in 2025. These fluctuations highlight the company's varying operational efficiency and profitability against its asset base across this period, emphasizing the importance of ongoing operational management and strategic adaptability.
Peer comparison
Jun 30, 2025