Autoliv Inc (ALV)
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 | 979,000 | 888,000 | 659,000 | 675,000 | 382,100 |
| Total assets | US$ in thousands | 7,804,000 | 8,332,000 | 7,717,000 | 7,537,000 | 8,156,800 |
| Operating ROA | 12.54% | 10.66% | 8.54% | 8.96% | 4.68% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $979,000K ÷ $7,804,000K
= 12.54%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profit from its assets employed in its core operations. Autoliv Inc has shown a positive trend in its Operating ROA over the past five years, indicating an improvement in efficiency and profitability.
From December 31, 2020, where the Operating ROA was 4.68%, Autoliv Inc experienced a gradual increase year over year. The ratio improved to 8.96% by December 31, 2021, further increasing to 8.54% by December 31, 2022.
The most significant jump in Operating ROA was observed between December 31, 2022, and December 31, 2023, where the ratio surged to 10.66%. This significant improvement suggests that Autoliv Inc was able to enhance its operating efficiency and profitability during that period.
By the end of December 31, 2024, Autoliv Inc achieved an Operating ROA of 12.54%, indicating that the company continued on a positive growth trajectory in terms of utilizing its assets effectively to generate operating income.
Overall, Autoliv Inc's Operating ROA trend reflects a commendable performance, demonstrating increasing efficiency and profitability in utilizing its assets for core operational activities over the specified period.
Peer comparison
Dec 31, 2024