Gcm Grosvenor Warrant(Gcmgw) Financials: Operating Roa Compared To Industry Average, Plus Other Key Ratios

Report Profitability Growth Liquidity Solvency Valuation

operating roa return on assets return on capital employed return on equity

Profitability Trend (Last 5 Years)

Profitability - operating roa

This chart shows the historical trend of operating roa for GCMGW compared to its industry average over the recent years.

Ratio Definition and Interpretation

Name: Operating ROA

Definition: Operating ROA measures how efficiently a company’s core operating activities generate profit from its total assets, before considering financing costs (interest) and taxes. Unlike regular ROA, which includes net income affected by debt and tax structures, Operating ROA focuses solely on the company’s ability to turn its invested assets into operating profits through its primary business operations. A higher Operating ROA indicates strong operational efficiency — meaning the company’s factories, equipment, inventory, and working capital are being utilized effectively to create profits from sales. Since it excludes financing and tax effects, Operating ROA provides a clearer picture of management’s effectiveness in running the business itself, regardless of capital structure differences across companies or industries.

Interpretation:
• In '2021', GCMGW's operating roa was 0.28, measuring return generated on operating assets. Industry average for Investment Managers in '2021' stood at 0.13.
• In '2022', GCMGW's operating roa was 0.18, measuring return generated on operating assets. The decline from '2021' may indicate some operational or financial challenges. Industry average for Investment Managers in '2022' stood at 0.11. Industry average declined by 0.03 from previous year.
• In '2023', GCMGW's operating roa was -0.00, measuring return generated on operating assets. The decline from '2022' may indicate some operational or financial challenges. Industry average for Investment Managers in '2023' stood at 0.05. Industry average declined by 0.06 from previous year.
• In '2024', GCMGW's operating roa was 0.15, measuring return generated on operating assets. The increase since '2023' reflects strengthening financial performance. Industry average for Investment Managers in '2024' stood at 0.08. Industry average increased by 0.04 compared to previous year.
Overall, GCMGW's operating roa has been volatile but showed a downward trend over the past 4 years.

Formula: Operating ROA = Operating Income / Total Assets

Good Range: Ranges widely; 5%-15% common.