The AES Corporation (AES)
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 | 191,000 | -93,000 | -530,000 | -173,000 | 338,000 |
| Total assets | US$ in thousands | 47,406,000 | 44,799,000 | 38,363,000 | 32,963,000 | 34,603,000 |
| Operating ROA | 0.40% | -0.21% | -1.38% | -0.52% | 0.98% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $191,000K ÷ $47,406,000K
= 0.40%
The operating return on assets (operating ROA) of The AES Corporation has exhibited fluctuations over the past five years. As of December 31, 2020, the company reported an operating ROA of 0.98%, indicating that for each dollar of assets, the company generated 0.98 cents in operating income.
However, the operating ROA declined significantly in the following years, reaching -0.52% as of December 31, 2021. This negative value suggests that the company's operating income was insufficient to cover the asset base, leading to a loss in operational efficiency.
The downward trend continued in the subsequent years, with operating ROA figures of -1.38% as of December 31, 2022, and -0.21% as of December 31, 2023. These negative values imply that the company faced challenges in effectively utilizing its assets to generate operating profits.
Fortunately, there was a slight improvement in the company's operating ROA as of December 31, 2024, rising to 0.40%. This positive value indicates a potential recovery in the company's operational efficiency, with a better return on its asset base compared to the previous year.
In conclusion, the fluctuating trend in The AES Corporation's operating ROA over the analyzed period highlights the importance of closely monitoring and managing the company's operational performance and asset utilization to ensure sustainable profitability and efficiency.