The AES Corporation (AES)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 191,000 | -418,000 | -269,000 | -171,000 | -87,000 | 379,000 | 762,000 | 805,000 | 764,000 | 1,537,000 | 1,436,000 | 1,237,000 | 915,000 | 1,262,000 | 428,000 | 1,102,000 | 1,422,000 | 1,076,000 | 1,881,000 | 1,722,000 |
| Total assets | US$ in thousands | 47,406,000 | 50,265,000 | 47,915,000 | 47,045,000 | 44,799,000 | 43,161,000 | 41,505,000 | 39,357,000 | 38,363,000 | 37,775,000 | 36,070,000 | 34,648,000 | 32,963,000 | 35,030,000 | 34,727,000 | 35,203,000 | 34,603,000 | 34,267,000 | 34,566,000 | 34,142,000 |
| Operating ROA | 0.40% | -0.83% | -0.56% | -0.36% | -0.19% | 0.88% | 1.84% | 2.05% | 1.99% | 4.07% | 3.98% | 3.57% | 2.78% | 3.60% | 1.23% | 3.13% | 4.11% | 3.14% | 5.44% | 5.04% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $191,000K ÷ $47,406,000K
= 0.40%
The operating return on assets (operating ROA) of The AES Corporation has shown fluctuations over the analyzed periods. The operating ROA ranged from a high of 5.44% in June 2020 to a low of -0.83% in September 2024. Generally, operating ROA indicates the efficiency of a company in generating operating profits relative to its total assets.
The trend in operating ROA indicates that the company's operational efficiency fluctuated significantly during the period under review. It decreased from 5.44% in June 2020 to 1.23% in June 2021, before showing some improvement up to 4.07% in September 2022. However, there was a decline in operating ROA in the subsequent quarters, reaching negative values by the end of 2024.
The declining trend in operating ROA from the later part of 2022 to 2024 may raise concerns about the company's ability to effectively utilize its assets to generate profits from its core operations. It is essential for The AES Corporation to carefully analyze the factors contributing to the decreasing trend in operating ROA and implement strategies to improve operational efficiency and asset utilization in order to enhance profitability in the future.