Allegion PLC (ALLE)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 708,400 | 586,400 | 530,200 | 403,500 | 565,100 |
| Total assets | US$ in thousands | 4,311,500 | 3,991,200 | 3,051,000 | 3,069,400 | 2,967,200 |
| Operating ROA | 16.43% | 14.69% | 17.38% | 13.15% | 19.04% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $708,400K ÷ $4,311,500K
= 16.43%
The operating return on assets (ROA) for Allegion plc has shown some fluctuations over the past five years. The trend indicates that the company's ability to generate profits from its operating assets has been somewhat volatile during this period.
In 2019, Allegion plc had the highest operating ROA at 19.04%, indicating that the company was efficient in generating profits from its operating assets that year. However, in the subsequent years, the operating ROA experienced a slight decline, reaching its lowest point in 2022 at 14.69%.
The operating ROA rebounded in 2023 to 16.60%, although it remained below the levels seen in 2019 and 2020. This suggests that while Allegion plc has been able to improve its efficiency in generating operating profits compared to the previous year, there is still room for further enhancement in maximizing returns from its assets.
Overall, Allegion plc's operating ROA performance indicates that the company has been somewhat inconsistent in effectively utilizing its operating assets to generate profits over the past five years. It may be beneficial for the company to focus on optimizing its asset management and operational efficiency to sustain and improve its profitability in the future.