Advanced Drainage Systems Inc (WMS)
Operating return on assets (Operating ROA)
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 732,131 | 719,310 | 411,918 | 344,525 | -95,349 |
| Total assets | US$ in thousands | 3,268,910 | 2,901,120 | 2,649,760 | 2,413,830 | 2,369,890 |
| Operating ROA | 22.40% | 24.79% | 15.55% | 14.27% | -4.02% |
March 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $732,131K ÷ $3,268,910K
= 22.40%
Advanced Drainage Systems Inc's operating return on assets (operating ROA) has shown a declining trend over the past five years, with a notable increase in the most recent fiscal year. The operating ROA was 22.40% in 2024, compared to 24.79% in 2023, indicating a slight decrease in profitability efficiency. However, the company's performance in 2024 remained strong relative to historical figures.
In 2022, Advanced Drainage Systems Inc's operating ROA was 15.55%, marking a significant improvement from the previous year's 14.27%. This suggests the company was able to generate more operating income from its assets during that period.
Notably, in 2020, the company experienced negative operating ROA of -4.02%, indicating that it faced challenges in generating operating profits from its assets during that year.
Overall, Advanced Drainage Systems Inc's operating ROA has displayed fluctuations, but the recent performance in 2024 shows a positive trend in profitability efficiency. It is essential for the company to continue monitoring and managing its operating ROA to ensure sustainable and profitable operations in the future.