Worthington Steel Inc (WS)
Operating return on assets (Operating ROA)
| May 31, 2024 | Aug 31, 2023 | Aug 31, 2022 | Aug 31, 2021 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | 194,500 | 127,485 | 226,576 | 221,522 |
| Total assets | US$ in thousands | 1,866,400 | 1,764,360 | 2,084,030 | 1,366,650 |
| Operating ROA | 10.42% | 7.23% | 10.87% | 16.21% |
May 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $194,500K ÷ $1,866,400K
= 10.42%
Operating return on assets (operating ROA) measures a company's ability to generate operating profit from its assets. Worthington Steel Inc's operating ROA has varied over the past four years, ranging from 16.21% in August 2021 to 7.23% in August 2023. The recent data for May 31, 2024, shows an increase to 10.42%.
The downward trend in operating ROA from 2021 to 2023 may indicate challenges in effectively utilizing assets to generate operating income during those years. However, the improvement in operating ROA in 2024 suggests a potential turnaround in the company's ability to generate profits from its assets.
Further analysis may be required to understand the specific factors contributing to these fluctuations in operating ROA and to assess Worthington Steel Inc's overall operational efficiency and asset management practices.
Peer comparison
May 31, 2024