Mueller Water Products (MWA)
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 | 181,700 | 127,400 | 111,600 | 131,700 | 116,800 |
| Total assets | US$ in thousands | 1,635,900 | 1,505,000 | 1,498,100 | 1,518,000 | 1,395,000 |
| Operating ROA | 11.11% | 8.47% | 7.45% | 8.68% | 8.37% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $181,700K ÷ $1,635,900K
= 11.11%
The operating return on assets (ROA) for Mueller Water Products demonstrates variability over the specified period from September 30, 2020, to September 30, 2024. In fiscal 2020, the operating ROA stood at 8.37%. This figure increased modestly in 2021 to 8.68%, indicating a slight improvement in operational efficiency relative to the company's asset base. However, in 2022, the operating ROA declined to 7.45%, reflecting a decrease in profitability from core operations, which may be attributable to either increased operating costs or decreased revenue generation.
Subsequently, in 2023, the operating ROA saw a recovery to 8.47%, nearly returning to the levels observed in 2021, suggesting a normalization or stabilization of operational performance. The most notable change occurred in 2024, when the operating ROA increased significantly to 11.11%. This positive shift indicates a substantial enhancement in operational efficiency or profitability relative to assets, potentially driven by improved sales, cost management, or operational restructuring.
Overall, the trend indicates a pattern of fluctuation in Mueller Water Products' operating ROA during the three-year period up to 2023, with a marked acceleration in performance in 2024. The upward movement in 2024 may imply successful strategic initiatives, better operational management, or favorable market conditions, resulting in a more effective utilization of assets to generate operating income.
Peer comparison
Sep 30, 2024