Quanex Building Products (NX)
Operating return on assets (Operating ROA)
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 54,826 | 110,701 | 111,281 | 81,870 | 55,265 |
| Total assets | US$ in thousands | 2,319,790 | 831,143 | 724,617 | 717,323 | 691,585 |
| Operating ROA | 2.36% | 13.32% | 15.36% | 11.41% | 7.99% |
October 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $54,826K ÷ $2,319,790K
= 2.36%
The operating return on assets (operating ROA) of Quanex Building Products has experienced fluctuations over the past five years.
In 2020, the operating ROA was at 7.99%, indicating that the company generated approximately $0.08 in operating income for every dollar of assets. This figure increased significantly to 11.41% in 2021, demonstrating improved asset utilization and operational efficiency.
The trend continued upwards in 2022, reaching a peak of 15.36%, suggesting even higher profitability from operating activities relative to its asset base. However, there was a notable decline in 2023 to 13.32%, possibly signaling challenges or changes in the company's operations during that period.
The latest data point for 2024 shows a further decrease in the operating ROA to 2.36%. This significant drop reflects a substantial decline in the company's ability to generate profit from its assets compared to previous years.
Overall, the analysis of the operating ROA for Quanex Building Products indicates a mixed performance, with periods of strong profitability followed by fluctuations and declines. It would be important for stakeholders to further investigate the factors driving these variations to make informed decisions about the company's financial health and operational efficiency.
Peer comparison
Oct 31, 2024