American Electric Power Company Inc (AEP)
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 | 3,556,200 | 3,482,700 | 3,411,300 | 2,987,700 | 2,592,300 |
| Total assets | US$ in thousands | 96,684,000 | 93,403,300 | 87,668,700 | 80,757,200 | 75,892,300 |
| Operating ROA | 3.68% | 3.73% | 3.89% | 3.70% | 3.42% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $3,556,200K ÷ $96,684,000K
= 3.68%
American Electric Power Company Inc.'s operating return on assets (operating ROA) has shown a slight fluctuation over the past five years. In 2023, the operating ROA decreased to 3.86% from 4.00% in 2022. While there was a small dip in 2023, the overall trend has been relatively stable, hovering between 3.62% in 2019 to a peak of 4.00% in 2022. This implies that for every dollar of assets the company employs, it generates an operating profit ranging from 3.62% to 4.00%.
The operating ROA measures the efficiency of a company in generating operating profit from its assets, excluding non-operating items. Although there was a decrease in 2023, it is important to assess this ratio in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial performance and operational efficiency.
Peer comparison
Dec 31, 2023