Advanced Drainage Systems Inc (WMS)

Operating return on assets (Operating ROA)

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	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	-95,349	-95,403	-111,520	-121,990
Total assets	US$ in thousands	3,268,910	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	2,369,890	2,249,180	2,295,320	1,068,420
Operating ROA		22.40%	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%	-4.02%	-4.24%	-4.86%	-11.42%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $732,131K ÷ $3,268,910K
= 22.40%

The operating return on assets (ROA) of Advanced Drainage Systems Inc has shown a fluctuating trend over the past several quarters. The company's operating ROA has ranged from a low of -11.42% in the third quarter of 2019 to a high of 24.79% in the first quarter of 2023.

During the most recent quarter, ending March 31, 2024, the operating ROA improved slightly to 22.40%. This indicates that the company generated $0.224 in operating income for every dollar of assets it holds.

Overall, the company's operating ROA has generally been on an upward trajectory, with occasional dips in performance. It is important for stakeholders to monitor this ratio closely to assess the company's efficiency in generating operating income from its assets.