Cae Ordinary Shares(Cae) Financials: Return On Assets Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on assets
This chart shows the historical trend of return on assets for CAE compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Assets (ROA)
Definition: ROA shows how efficiently the company turns everything it owns — its entire asset base — into net profit after all costs and taxes. A higher ROA means the business squeezes more profit from its assets. Lower ROA might reflect poor asset utilization or heavy reliance on expensive financing.
Interpretation:
• In '2021', CAE's return on assets was -0.5%, representing returns generated from total assets. Industry average for Industrial Machinery/Components in '2021' stood at -15.0%.
• In '2022', CAE's return on assets was 1.6%, representing returns generated from total assets. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2022' stood at -9.7%. Industry average increased by 5.3% compared to previous year.
• In '2023', CAE's return on assets was 2.2%, representing returns generated from total assets. The increase since '2022' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2023' stood at -19.4%. Industry average declined by 9.7% from previous year.
• In '2024', CAE's return on assets was -3.0%, representing returns generated from total assets. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at -26.3%. Industry average declined by 6.9% from previous year.
Overall, CAE's return on assets has been volatile but showed a downward trend over the past 4 years.
Formula: ROA = Net Income / Total Assets
Good Range: Commonly 5%-15%.