American Electric Power Co Inc (AEP)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019
Operating income (ttm) US$ in thousands 4,243,100 4,500,800 4,024,000 3,556,200 3,492,900 3,069,700 3,199,400 3,482,700 3,606,300 3,783,600 3,589,100 3,411,300 3,297,800 3,133,600 3,046,400 2,987,700 2,712,200 2,727,200 2,555,500 2,592,300
Total assets US$ in thousands 103,078,000 100,119,000 97,744,600 96,684,000 95,125,600 96,002,100 94,517,900 93,403,300 91,249,400 90,861,300 89,831,400 87,668,700 86,337,100 84,358,200 82,985,100 80,757,200 78,689,300 77,804,800 77,724,000 75,892,300
Operating ROA 4.12% 4.50% 4.12% 3.68% 3.67% 3.20% 3.38% 3.73% 3.95% 4.16% 4.00% 3.89% 3.82% 3.71% 3.67% 3.70% 3.45% 3.51% 3.29% 3.42%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $4,243,100K ÷ $103,078,000K
= 4.12%

American Electric Power Co Inc's operating return on assets (operating ROA) has shown fluctuations over the provided time period. The operating ROA ranged from 3.29% to 4.50%, indicating the company's ability to generate earnings from its operational assets.

Notably, the operating ROA increased from 3.42% in December 2019 to 4.50% in September 2024, reaching its peak during this period. This improvement suggests that the company effectively utilized its operational assets to generate higher returns.

However, there were fluctuations in the operating ROA throughout the period, with some quarters showing declines in performance. For instance, the operating ROA decreased from 4.16% in June 2022 to 3.95% in September 2022, indicating a temporary decrease in asset utilization efficiency.

Overall, the trend in operating ROA for American Electric Power Co Inc demonstrates some volatility but with a general upward trajectory. Analyzing the operating ROA can provide insights into the company's operational efficiency in generating returns from its assets over time.