Arcosa Inc (ACA)
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 | 197,600 | 182,700 | 158,200 | 107,300 | 151,800 |
| Total assets | US$ in thousands | 4,915,500 | 3,577,900 | 3,340,600 | 3,188,100 | 2,646,700 |
| Operating ROA | 4.02% | 5.11% | 4.74% | 3.37% | 5.74% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $197,600K ÷ $4,915,500K
= 4.02%
Over the past five years, Arcosa Inc's operating return on assets (operating ROA) has exhibited variability in performance. In 2020, the company reported an operating ROA of 5.74%, indicating that for every dollar of assets, the company generated 5.74 cents in operating income. However, this metric declined to 3.37% in 2021, reflecting a decrease in the company's operating efficiency and profitability.
In 2022, there was a slight improvement in Arcosa Inc's operating ROA to 4.74%, suggesting that the company was able to enhance its operational performance compared to the previous year. Subsequently, in 2023, the operating ROA further increased to 5.11%, signifying a positive trend in utilizing assets to generate operating income effectively.
However, in 2024, Arcosa Inc experienced a decline in its operating ROA to 4.02%, indicating a decrease in operational efficiency and the ability to generate profits from its assets compared to the previous year. Overall, the fluctuation in Arcosa Inc's operating ROA over the years highlights the importance of closely monitoring and managing asset utilization and operational performance to drive sustainable profitability and value creation for the company.
Peer comparison
Dec 31, 2024