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.