Mueller Water Products (MWA)

Return on assets (ROA)

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Net income US$ in thousands 115,900 85,500 76,600 70,400 72,000
Total assets US$ in thousands 1,635,900 1,505,000 1,498,100 1,518,000 1,395,000
ROA 7.08% 5.68% 5.11% 4.64% 5.16%

September 30, 2024 calculation

ROA = Net income ÷ Total assets
= $115,900K ÷ $1,635,900K
= 7.08%

The return on assets (ROA) for Mueller Water Products has exhibited a generally upward trend over the analyzed period from September 2020 to September 2024. Specifically, the ROA was recorded at 5.16% as of September 30, 2020, indicating the company's efficiency in utilizing its assets to generate profit during that year. In subsequent years, the ROA declined slightly to 4.64% by September 2021, suggesting a temporary dip in asset efficiency or profitability relative to the asset base.

However, in the following year, the ROA rebounded to 5.11% as of September 30, 2022, which indicates an improvement in net income relative to total assets. Continuing this positive trajectory, the ROA increased further to 5.68% by September 2023, reflecting enhanced operational efficiency or higher profitability margins. The most notable change occurred in the year ending September 30, 2024, where the ROA markedly increased to 7.08%, representing a substantial improvement in the company's ability to generate earnings from its asset base.

This overall progression suggests that Mueller Water Products has experienced an enhancing trend in asset efficiency and profitability over the analyzed period, especially in the latest year. The upward movement in ROA may be attributed to improved operational performance, cost management, or strategic initiatives that have positively impacted net income relative to total assets.