Agilent Technologies Inc (A)
Operating return on assets (Operating ROA)
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,350,000 | 1,618,000 | 1,347,000 | 846,000 | 941,000 |
| Total assets | US$ in thousands | 10,763,000 | 10,532,000 | 10,705,000 | 9,627,000 | 9,452,000 |
| Operating ROA | 12.54% | 15.36% | 12.58% | 8.79% | 9.96% |
October 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,350,000K ÷ $10,763,000K
= 12.54%
Operating return on assets (Operating ROA) is a crucial financial metric that measures the efficiency of a company in generating operating income from its assets. The trend of Agilent Technologies Inc.'s Operating ROA over the past five years can provide valuable insights into the company's operational performance and asset utilization.
From 2019 to 2020, Agilent Technologies Inc.'s Operating ROA increased from 9.96% to 8.79%, indicating a slight decrease in its ability to generate operating income from its assets. This decline could be attributed to various factors such as increased operating expenses, lower operating income, or changes in asset utilization efficiency.
However, the trend reversed in the subsequent years, with the Operating ROA experiencing a significant improvement. The metric increased to 12.58% in 2021 and further to 15.36% in 2022, signifying a notable enhancement in the company's ability to generate operating income relative to its assets.
The latest available data for October 31, 2023, shows Agilent Technologies Inc.'s Operating ROA at 12.54%. Although lower than the previous year, this still represents a relatively strong performance in terms of generating operating income from the company's assets.
Overall, the fluctuation in Agilent Technologies Inc.'s Operating ROA indicates varying levels of efficiency in utilizing its assets to generate operating income over the past five years. The improvement in 2021 and 2022 is particularly noteworthy, reflecting positively on the company's operational performance and potentially indicating effective management of operating expenses and asset utilization.
In conclusion, the analysis of Agilent Technologies Inc.'s Operating ROA suggests that the company has demonstrated the ability to enhance its operational efficiency and asset utilization in recent years, leading to improved returns from its assets.
Peer comparison
Oct 31, 2023