Woodward Inc (WWD)
Operating return on assets (Operating ROA)
| 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 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 36,889 | 21,705 | 4,568 | -84,432 | -139,007 | -147,262 | -174,605 | -104,740 | -99,105 | -96,346 | -96,933 | -80,815 | -64,012 | 478,892 | 409,449 | 433,118 | 403,896 | 583,967 | 680,840 | 641,011 |
| Total assets | US$ in thousands | 4,368,920 | 4,320,310 | 4,366,260 | 4,130,800 | 4,010,200 | 4,009,560 | 4,011,530 | 3,894,810 | 3,806,450 | 3,755,790 | 3,890,540 | 4,035,240 | 4,091,000 | 4,088,660 | 4,020,770 | 3,959,500 | 3,903,340 | 3,906,670 | 4,060,280 | 4,007,170 |
| Operating ROA | 0.84% | 0.50% | 0.10% | -2.04% | -3.47% | -3.67% | -4.35% | -2.69% | -2.60% | -2.57% | -2.49% | -2.00% | -1.56% | 11.71% | 10.18% | 10.94% | 10.35% | 14.95% | 16.77% | 16.00% |
September 30, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $36,889K ÷ $4,368,920K
= 0.84%
Woodward Inc's operating return on assets (ROA) has shown fluctuations over the periods covered in the data. Operating ROA is a measure of a company's operating income generated relative to its total assets. A higher operating ROA indicates better efficiency in utilizing assets to generate operating profits.
In the most recent period of September 2024, Woodward Inc's operating ROA stood at 0.84%, representing an improvement compared to the previous quarter. This suggests that the company was able to generate more operating income per dollar of assets during this period.
Looking back over the past few quarters, the operating ROA has generally been negative, indicating challenges in generating operating income relative to the total assets employed. The significant negative operating ROA in December 2019 and March 2020 raised concerns about the company's operational efficiency and asset utilization during that period.
The significant improvement in operating ROA in the first quarter of 2021 and in the second quarter of 2021, with values of 11.71% and 10.18% respectively, pointed towards a strong performance in terms of generating operating profits from the assets deployed. These periods demonstrated Woodward Inc's ability to efficiently convert its assets into operating income.
However, the operating ROA declined in subsequent quarters, indicating a potential decrease in operating efficiency and profitability relative to the total assets in those periods.
Overall, Woodward Inc's operating ROA shows variability, with some periods reflecting strong operational performance while others indicating challenges in asset utilization and operating income generation. Continued monitoring and analysis of this metric will be important to track the company's operational efficiency and profitability trends.