RPM International Inc (RPM)
Operating return on assets (Operating ROA)
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 601,216 | 510,777 | 452,576 | 488,570 | 261,060 |
| Total assets | US$ in thousands | 6,586,540 | 6,782,000 | 6,707,710 | 6,252,970 | 5,630,950 |
| Operating ROA | 9.13% | 7.53% | 6.75% | 7.81% | 4.64% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $601,216K ÷ $6,586,540K
= 9.13%
RPM International Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 4.64% in 2020 to 9.13% in 2024. This indicates that the company has been able to generate more operating income relative to its total assets, reflecting improved operational efficiency and profitability.
The gradual improvement in operating ROA suggests that RPM International Inc has been effectively utilizing its assets to generate operating income over the years. The 2024 operating ROA of 9.13% is higher than the preceding years, indicating a stronger performance in converting assets into operating profits.
Overall, the increasing trend in operating ROA demonstrates that RPM International Inc has been successful in enhancing its operational performance and efficiency, which is favorable from an investor's perspective. This improvement may also signify effective management of costs, increased sales, or better asset utilization within the company.
Peer comparison
May 31, 2024