Woodward Inc (WWD)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 232,368 | 171,698 | 208,649 | 240,395 | 259,602 |
| Total assets | US$ in thousands | 4,010,200 | 3,806,450 | 4,091,000 | 3,903,340 | 3,956,530 |
| ROA | 5.79% | 4.51% | 5.10% | 6.16% | 6.56% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $232,368K ÷ $4,010,200K
= 5.79%
Woodward Inc's return on assets (ROA) measures the company's ability to generate profit relative to its total assets. The trend in Woodward's ROA over the past five years shows some fluctuations. In 2023, the ROA stands at 5.79%, marking an increase from the previous year's 4.51%. This signifies an improvement in the company's efficiency in generating earnings from its assets. However, when compared to 2021 and 2020, when the ROA was 5.10% and 6.16% respectively, there has been a decline in performance. Additionally, the 2019 ROA of 6.56% was higher than the current figure, indicating a sustained decrease in the company's ability to generate earnings from its assets. Further analysis of the company's asset utilization and profitability components may provide insights into the drivers behind these changes.