Alcoa Corp (AA)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,519,000 | -584,000 | 702,000 | 1,199,000 | 173,000 |
| Total assets | US$ in thousands | 14,065,000 | 14,155,000 | 14,756,000 | 15,025,000 | 14,860,000 |
| Operating ROA | 10.80% | -4.13% | 4.76% | 7.98% | 1.16% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,519,000K ÷ $14,065,000K
= 10.80%
The operating return on assets (operating ROA) for Alcoa Corp has fluctuated over the past five years. In December 2020, the operating ROA was 1.16%, indicating that the company generated 1.16 cents of operating income for every dollar of assets.
By December 2021, the operating ROA improved significantly to 7.98%, suggesting that the company became more efficient in generating operating income relative to its assets. This improvement could be due to various factors such as increased revenue, cost control measures, or operational efficiency.
In December 2022, the operating ROA slightly decreased to 4.76%, which may indicate a temporary slowdown in operational performance or changes in the asset base of the company.
The operating ROA took a negative turn in December 2023 with a -4.13% figure. A negative operating ROA implies that the company's operating income was insufficient to cover the asset base, potentially indicating operational challenges or financial difficulties during that period.
However, Alcoa Corp rebounded strongly in December 2024, achieving an impressive operating ROA of 10.80%. This sharp increase reflects a significant improvement in the company's ability to generate operating income from its assets, signaling a potential turnaround in operational efficiency and profitability.
Overall, the trend in Alcoa Corp's operating ROA shows fluctuations over the years, with notable improvements in some periods and challenges in others. It is essential for the company to consistently monitor and manage its operational performance to maintain and increase its operating ROA effectively.
Peer comparison
Dec 31, 2024