Alcoa Corp (AA)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | -152,000 | -331,000 | -224,000 | 442,000 | 1,312,000 | 4,216,000 | 4,791,000 | 4,639,000 | 4,145,000 | 4,085,000 | 3,637,000 | 3,141,000 | 2,682,000 | 2,726,000 | 2,767,000 | 5,205,000 | 7,102,000 | 7,734,000 | 10,413,000 | 10,863,000 |
| Total assets | US$ in thousands | 14,155,000 | 13,917,000 | 14,128,000 | 14,369,000 | 14,756,000 | 14,885,000 | 15,709,000 | 15,988,000 | 15,025,000 | 14,197,000 | 14,438,000 | 14,931,000 | 14,860,000 | 14,250,000 | 13,300,000 | 13,651,000 | 14,631,000 | 14,670,000 | 15,349,000 | 15,956,000 |
| Operating ROA | -1.07% | -2.38% | -1.59% | 3.08% | 8.89% | 28.32% | 30.50% | 29.02% | 27.59% | 28.77% | 25.19% | 21.04% | 18.05% | 19.13% | 20.80% | 38.13% | 48.54% | 52.72% | 67.84% | 68.08% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $-152,000K ÷ $14,155,000K
= -1.07%
The operating return on assets (operating ROA) for Alcoa Corp has been fluctuating over the past eight quarters. In Q4 2023 and Q3 2023, the operating ROA was negative at -2.73% and -2.53% respectively, indicating that the company's operating income generated from its assets was insufficient to cover its operating expenses. This negative trend raises concerns about the company's operational efficiency and profitability during those periods.
Prior to the recent downturn, in Q1 2023, Alcoa Corp experienced a notable recovery in its operating ROA, reaching 3.54%. This implies that the company was able to generate a positive operating profit relative to its total assets, reflecting improved operational performance compared to the previous quarters.
Looking further back, in Q2 2022 and Q1 2022, Alcoa Corp achieved relatively high operating ROA figures of 18.08% and 16.51% respectively. These percentages indicate that the company was effectively utilizing its assets to generate operating income during those periods, demonstrating strong operational efficiency and profitability.
However, the significant decline in operating ROA from Q2 2022 to the recent quarters suggests potential challenges or changes in the company's operations that have impacted its ability to generate sufficient returns from its assets. It would be important for stakeholders to closely monitor Alcoa Corp's operating performance and assess the factors contributing to the fluctuating operating ROA to make informed decisions regarding the company's financial health and future prospects.
Peer comparison
Dec 31, 2023