Albany International Corporation (AIN)
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 | 131,359 | 172,357 | 181,022 | 178,011 | 166,080 |
| Total assets | US$ in thousands | 1,648,700 | 1,835,010 | 1,642,260 | 1,556,060 | 1,549,940 |
| Operating ROA | 7.97% | 9.39% | 11.02% | 11.44% | 10.72% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $131,359K ÷ $1,648,700K
= 7.97%
Albany International Corporation's operating return on assets (ROA) has shown some variability over the past five years. The trend indicates a slight increase in operating ROA from 10.72% as of December 31, 2020, reaching its peak at 11.44% as of December 31, 2021. However, there was a mild decline in the operating ROA to 11.02% as of December 31, 2022, followed by a more noticeable decrease to 9.39% as of December 31, 2023, and a further drop to 7.97% as of December 31, 2024.
The operating ROA measures the company's ability to generate operating profits from its assets. The declining trend in operating ROA over the past two years suggests that Albany International Corporation may be experiencing challenges in efficiently utilizing its assets to generate operating income. This could be due to various factors such as increasing operating expenses, declining sales, or insufficient asset turnover.
It is important for the company to closely monitor its operating ROA and assess the factors contributing to its fluctuations. Improving operational efficiency and asset utilization could help Albany International Corporation enhance its profitability and overall financial performance in the future.