Post Holdings Inc (POST)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 598,900 | 415,600 | 487,700 | 536,500 | 781,000 |
| Total assets | US$ in thousands | 11,646,700 | 11,308,000 | 12,414,700 | 12,146,700 | 11,951,600 |
| Operating ROA | 5.14% | 3.68% | 3.93% | 4.42% | 6.53% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $598,900K ÷ $11,646,700K
= 5.14%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Looking at the data for Post Holdings Inc, the trend of the operating ROA over the past five years shows some variation.
In 2023, Post Holdings Inc's operating ROA stood at 5.50%, exhibiting an improvement from the previous year. This increase indicates that the company was able to generate higher operating profits relative to its assets compared to the prior period, which may suggest improved operational efficiency or better asset utilization.
Comparing with the data from 2020 and 2021, the firm experienced a slight decline in operating ROA in 2022. This might indicate a decrease in operating profitability relative to its assets during that period.
Furthermore, the operating ROA has shown a gradual decrease since 2019 when it stood at 6.01%. This decline suggests that the company's ability to generate operating profits from its assets has weakened over the past five years.
Overall, the trend in Post Holdings Inc's operating ROA indicates some fluctuations and a general downward trajectory over the years, prompting further analysis into the company's operational and asset management strategies to identify factors influencing this trend.
Peer comparison
Sep 30, 2023