Ameren Corp (AEE)
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 | 1,558,000 | 1,515,000 | 1,333,000 | 1,300,000 | 1,267,000 |
| Total assets | US$ in thousands | 40,830,000 | 37,904,000 | 35,735,000 | 32,030,000 | 28,933,000 |
| Operating ROA | 3.82% | 4.00% | 3.73% | 4.06% | 4.38% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,558,000K ÷ $40,830,000K
= 3.82%
The operating return on assets (ROA) for Ameren Corp. has shown a declining trend over the past five years, decreasing from 4.38% in 2019 to 3.82% in 2023. This indicates that the company's ability to generate operating income from its assets has weakened over this period. The decrease in operating ROA may be attributed to various factors such as changes in operating efficiency, profitability, or asset utilization.
It is important for Ameren Corp. to closely monitor its operating ROA and identify areas where improvements can be made to enhance asset productivity and profitability. Analyzing the underlying reasons for the decline in operating ROA can help the company make strategic decisions to optimize its operational performance and enhance overall financial results. A lower operating ROA may also signal potential concerns regarding the company's operational efficiency and effectiveness in utilizing its assets to generate profits.
Peer comparison
Dec 31, 2023