Alcoa Corp (AA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -152,000 | 1,306,000 | 4,206,000 | 801,000 | -1,892,000 |
| Total assets | US$ in thousands | 14,155,000 | 14,756,000 | 15,025,000 | 14,860,000 | 14,631,000 |
| Operating ROA | -1.07% | 8.85% | 27.99% | 5.39% | -12.93% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-152,000K ÷ $14,155,000K
= -1.07%
Operating return on assets (Operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its operating assets. A higher operating ROA suggests better asset utilization and profitability.
Analyzing Alcoa Corp's Operating ROA over the past five years, we observe fluctuations in performance. In 2023, the company's Operating ROA was negative at -2.73%, indicating that the company incurred operating losses relative to its assets. This contrasts sharply with the positive Operating ROA of 9.21% and 13.82% in 2022 and 2021, respectively, which signifies that the company was able to generate profits from its operating assets effectively during those periods.
The Operating ROA in 2020 was 2.59%, implying a moderate level of profitability compared to previous years. In 2019, the Operating ROA stood at 5.65%, indicating a higher level of profitability compared to 2020 but lower than the peak in 2021.
The fluctuation in Alcoa Corp's Operating ROA over the years may be attributed to various factors such as changes in operating performance, asset utilization, cost management, and economic conditions affecting the industry. Investors and stakeholders should closely monitor these trends to assess the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2023