Advanced Drainage Systems Inc (WMS)
Operating return on assets (Operating ROA)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 657,436 | 676,124 | 702,526 | 713,187 | 732,131 | 722,385 | 693,606 | 713,154 | 719,310 | 674,456 | 660,283 | 554,259 | 411,918 | 364,031 | 336,680 | 346,693 | 344,525 | 318,394 | 276,451 | 212,096 |
| Total assets | US$ in thousands | 3,690,360 | 3,602,250 | 3,535,750 | 3,447,540 | 3,314,040 | 3,161,960 | 3,137,970 | 3,048,670 | 2,901,120 | 3,005,660 | 3,177,600 | 3,225,360 | 2,649,760 | 2,555,760 | 2,506,620 | 2,474,620 | 2,413,830 | 2,342,440 | 2,373,370 | 2,415,030 |
| Operating ROA | 17.81% | 18.77% | 19.87% | 20.69% | 22.09% | 22.85% | 22.10% | 23.39% | 24.79% | 22.44% | 20.78% | 17.18% | 15.55% | 14.24% | 13.43% | 14.01% | 14.27% | 13.59% | 11.65% | 8.78% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $657,436K ÷ $3,690,360K
= 17.81%
Advanced Drainage Systems Inc has shown a positive trend in its operating return on assets (operating ROA) over the period from June 30, 2020, to March 31, 2025. The operating ROA has steadily increased from 8.78% in June 2020 to a peak of 24.79% in March 2023, indicating improving efficiency in generating operating profits relative to its assets.
However, after reaching the peak in March 2023, the operating ROA started to decline gradually to 17.81% by March 2025. This decline suggests that the company may be experiencing challenges in maintaining or further improving its operating efficiency in utilizing its assets to generate profits.
It is crucial for stakeholders to monitor Advanced Drainage Systems Inc's operating ROA closely to assess the company's operational performance and efficiency in utilizing its assets effectively to generate returns for investors. Further analysis of the company's operating expenses, asset utilization, and overall profitability may provide insights into the factors influencing the fluctuations in the operating ROA.