American Electric Power Co Inc (AEP)
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 | 4,303,600 | 3,556,200 | 3,482,700 | 3,411,300 | 2,987,700 |
| Total assets | US$ in thousands | 103,078,000 | 96,684,000 | 93,403,300 | 87,668,700 | 80,757,200 |
| Operating ROA | 4.18% | 3.68% | 3.73% | 3.89% | 3.70% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $4,303,600K ÷ $103,078,000K
= 4.18%
American Electric Power Co Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years. The operating ROA was 3.70% at December 31, 2020, increasing slightly to 3.89% by December 31, 2021. However, in the subsequent years, there was some variation in the operating ROA. It decreased to 3.73% by December 31, 2022 before slightly dropping to 3.68% at December 31, 2023.
The most significant improvement in operating ROA was observed at December 31, 2024, where it reached 4.18%, indicating a positive trend and potentially improved operational efficiency or profitability for the company. It is essential for stakeholders to monitor this ratio to assess the company's ability to generate profit from its assets used in operations.
Peer comparison
Dec 31, 2024